Taiex Surges 939 Points as Memory Stocks Rally Across the Board
The Taiex posted strong gains on the 28th, with the weighted index closing up 939.35 points at 47,035.58 points on turnover of NT$7,221.35 billion. Memory stocks rose in tandem, mainly driven by Micron's gain of nearly 3% and positive news from the Powertech Technology (6239) earnings call, with market sentiment clearly warming. A state-owned investment advisory released its latest memory industry report, noting that amid AI server restocking and high-bandwidth memory capacity crowding-out, shortages and high prices will extend into 2027.
HBM Consumes Multiple Times More Wafers, Crowding Out Conventional DRAM Supply
The report analyzes that generative AI demand has changed the structure of the semiconductor cycle, with Samsung, SK Hynix and Micron prioritizing capacity toward high-bandwidth memory and high-end chips, limiting conventional DRAM supply. Producing HBM3E consumes 3 times the wafer capacity of conventional DDR5, while HBM4 and HBM4E reach 3.5 times and 5 times, respectively. With HBM4 bus width doubling, higher technology barriers and capacity remaining locked up, global memory supply remains tight.
Server Shipments to Grow by Double Digits, Offsetting Consumer Electronics Weakness
On end demand, consumer electronics such as smartphones and PCs saw slight shipment declines due to rising memory prices, but server market restocking momentum remains strong. Global server shipments are forecast to grow 13% and 17% year-on-year this year and in 2027, respectively, while servers now account for more than 40% of overall DRAM consumption, helping fill the gap in the consumer market. In addition, accelerating enterprise SSD penetration is also supporting NAND Flash prices at high levels.
Names 4 Stocks Including Nanya Technology, With Target Prices Up to NT$3,000
The state-owned investment advisory gives buy ratings to Nanya Technology (2408), Winbond (2344), Phison (8299) and Innodisk (5289). Nanya Technology benefits from high-end DRAM pricing and full capacity utilization, with its 1C new process expected to enter validation in the first quarter of 2027. EPS is forecast at 77.85 yuan and 133.21 yuan for this year and 2027, with a target price of 800 yuan. Winbond surpassed 30% market share after acquiring Infineon's NOR Flash and F-RAM business, and is expanding 16nm DRAM capacity at its Kaohsiung plant with nearly 40 billion yuan in investment. EPS is forecast at 27.34 yuan and 61.23 yuan, with a target price of 300 yuan. Phison holds low-cost controller chips and NAND inventory, with EPS forecast at 467.05 yuan and 594.31 yuan and a target price of 3,000 yuan. Innodisk is focused on Edge AI edge computing, with EPS forecast at 389.96 yuan and 404.71 yuan and a target price of 2,000 yuan.