Institutional investors upgraded Powerchip Semiconductor's rating to 'buy,' projecting EPS of 8.53 yuan and 13.87 yuan for the next two years, with a target price of 85 yuan. This optimism stems from expectations of rising memory and logic foundry prices, alongside a significant gross margin recovery to 50% as the company enters Micron's supply chain.
Powerchip Semiconductor's expected entry into Micron's supply chain and 50% gross margin recovery signals tightening DRAM supply and pricing power for memory manufacturers.