Goldman Sachs on Huaqin Technology (603296) China AI Tour: Supernode and Switch Ramps Drive Data-Center Growth
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Goldman Sachs met Huaqin Technology's management during its China AI tour in Shanghai on September 8, 2026, focusing on supernode opportunities and the ramp of switches and AI servers, and maintained its Buy rating. Management expects supernodes and switches to become key growth drivers for the data-center business, supported by AI spending from Chinese CSP customers and Huaqin's strong R&D plus integrated solutions spanning servers and switches. Huaqin engaged early in customers' supernode development, adapts products to mainstream domestic GPU platforms, and combines compute-node and network-node design capabilities to deliver compute nodes, switches, and full racks integrated. Supernodes shipped in small volumes in 2Q26, with volumes expected to ramp in 2H26. Goldman Sachs also highlights rising AI training/inference capex by Chinese CSPs, share gains in PC and server ODM, and expansion into AI devices (AI PCs, wearables). Twelve-month targets are RMB106.43 for A-shares (2027E P/E 18.8x; 39.1% upside from RMB76.53) and HK$127.76 for H-shares (14.0x; 71.6% upside from HK$74.45). EPS is forecast to grow from RMB2.85 (2025) and RMB3.72 (2026E) to RMB5.66 (2027E) and RMB7.24 (2028E), with P/E falling to 10.6x by 2028E. Key risks: slower AI-server ramp-up, slower production-base diversification, and fiercer price competition.
Key exhibits
Exhibit 1
