Goldman Sachs upgraded Hua Hong Semiconductor's rating from "Neutral" to "Buy" in a report, raising its target price by 28% to HK$68.1. The bullish outlook stems from new growth opportunities presented by AI applications (such as power management chips for data centers and mature process chips for edge AI devices), price improvements supported by high capacity utilization rates over the past few quarters, long-term demand driven by expanding domestic customer demand, and continued capacity expansion and technology node upgrades (with an expected introduction of 28nm in 2027). The current price, representing a 2026 forecast P/E ratio of 43x, is within its historical valuation range. However, given the company's projected 63% compound annual growth rate in net profit from 2025 to 2029, there is still room for further upside.