Hong Kong Hot Stock Analysis: InnoScience (02577.HK)

InnoScience (02577.HK) is a notable hot stock in the Hong Kong market recently, with its strong performance driven by industry trends and multiple positive factors of the company itself. At the industry level, NVIDIA has adopted an 800V DC architecture for its AI data centers, significantly increasing demand for GaN power semiconductors—GaN being InnoScience’s core product [0]. This trend has made GaN a key component for efficient power management in high-performance computing environments.

At the company level, InnoScience was named an official supplier for NVIDIA’s 800V DC architecture in August 2025, establishing a direct revenue stream with the global tech leader [0]. Additionally, its strategic cooperation with ON Semiconductor is expected to generate hundreds of millions of US dollars in sales over the next few years, further solidifying the company’s market position [0]. In December 2025, the company won a patent lawsuit against Infineon, eliminating potential competitive barriers and protecting its intellectual property [0].

The competitive landscape has also become more favorable: NXP and TSMC plan to close their GaN production lines, which may reduce market competition and increase InnoScience’s market share [0]. These factors together have driven the stock’s strong performance—on December 30, 2025, the stock closed up 14.39% to HK$77.50 with a trading volume of HK$7.29 billion [0].

1. The convergence of AI data center expansion and GaN technology application has created significant growth opportunities for InnoScience, as NVIDIA’s 800V architecture shifts demand toward high-performance power semiconductors.
2. Collaborations with industry leaders (NVIDIA, ON Semiconductor) validate InnoScience’s technical capabilities and lay the foundation for sustainable revenue growth.
3. The exit of major players from the GaN market may allow InnoScience to gain additional market share and pricing power.

• Sustained expansion of AI data centers drives continuous demand for GaN products.
• Potential to establish further strategic collaborations with other tech giants adopting high-voltage power architectures.
• Increased market share due to reduced competition.

• The semiconductor industry remains highly competitive in technology; other companies may develop competing GaN solutions.
• Dependence on key customers (NVIDIA, ON Semiconductor) may lead to revenue fluctuations in case of contract changes.
• Regulatory or supply chain issues may impact production or distribution.

InnoScience (02577.HK) is a GaN power semiconductor specialist that benefits from multiple positive factors: NVIDIA’s adoption of the 800V DC architecture, official supplier status, strategic collaborations, patent protection, and reduced market competition. The stock has performed strongly recently, closing at HK$77.50 on December 30, 2025, with significant trading volume. Investors should consider both the growth opportunities and inherent risks in the semiconductor industry.