HK Stock Market Move | PATEO (02889) surged nearly 13% in the late trading session. The trend of integrating AI large models into vehicles has become a reality as the company makes a significant acquisition to expand its layout in vehicle optical communication.

PATEO (02889) surged nearly 13% in the final trading hours, and as of the time of reporting, it was up 12.83% at HKD 179.4, with a trading volume of HKD 144 million. On the news front, on August 7, PATEO announced that it would acquire approximately 70% of Chengdu Mingyi, a domestic high-performance communication chip design company, for no more than 1.4 billion yuan. This transaction marks PATEO's first significant industry acquisition since going public and represents a substantive step forward in the company's integrated "soft-hard chip cloud" strategy in the chip segment. Notably, with the implementation of AI large models in automotive intelligence, the demand for data transmission within vehicles is experiencing explosive growth, ranging from L4 autonomous driving to voice interaction and multi-modal real-time perception. As the data throughput of an intelligent vehicle resembles that of a small data center, the migration of optical communication technology from AI servers to onboard scenarios becomes an inevitable path for industry evolution. PATEO's acquisition enhances the company's core capabilities in the chip segment, positioning it strategically in the definite direction of onboard optical communication.