AI Chain Momentum Extends to 2027
Cathay Securities Futures consultants pointed out on the 5th that AI demand continues to heat up, from Edge AI, high-end CCL, MLCC to ASIC chips, the Taiwan technology supply chain welcomes a new wave of growth momentum, the short-term correction in Taiwan stocks still has fundamental support, optimistic on Advantech, Elite Material, Holy Stone and MediaTek and other indicator stocks, and naming semiconductor equipment, solar and energy storage groups, capturing 2027 growth opportunities.
Divided Government and High Interest Rates Suppress Valuations
On the macro front, after the U.S. midterm elections a divided government was formed, fiscal expansion is constrained, the Fed still faces rate-hike pressure from year-end to early 27, high real interest rates may suppress technology stock valuations. Investment focuses on AI, semiconductors and leading companies with pricing power, bonds focus on medium-term government bonds and investment-grade bonds, balancing yield and liquidity. After Democrats retook Congress, it is expected to raise U.S. CHIPS Act subsidies and certainty of semiconductor onshoring investment, although short-term tariff and export control policies may not change.
Advantech Elite Material Holy Stone Earnings Bright
Advantech benefits from strong semiconductor equipment, medical and Edge AI demand, 3Q26 operations hit a high, 4Q26 although affected by holidays and ERP upgrades, revenue may pull back slightly, but order visibility extends to 2027, orders in the three major markets are stable, increased Edge AI share will become the main growth driver, estimated 2026 and 2027 EPS at 22.19元 and 27.84元, maintaining a Buy rating. Elite Material方面, the impact of the Taiwan Panasonic Hukou plant accident on global CCL supply is limited, as its capacity accounts for less than 10% of Panasonic overall, with Google TPU and other AI platforms driving high-end CCL demand, supply market share continues to rise, TPU V9 volume ramp is expected to further expand share, 26 to 27 earnings have high growth momentum, maintaining a Strong Buy rating. Holy Stone 3Q26 revenue was 45.4億元, up 10.8% QoQ and 32.2% YoY, EPS 4.36元 beat expectations, benefiting from AI data center power, BBU and TPU ASIC demand driving high-end MLCC shipments, gross margin rose to 29.8%, 4Q26 demand remains strong, 27 MLCC capacity is expected to expand by about 40%, maintaining a Buy rating.
ASIC Solar Energy Storage and Fab Facility Equipment
Qualcomm FY4Q26 revenue was 104億美元, EPS 2.17美元, automotive business up 89% YoY, FY1Q27 data center ASICs began shipping, although initial dilution of gross margin is feared. MediaTek benefits from mobile recovery and ASIC demand, 27 ASIC revenue estimated over 5,000億元, driving revenue up 83.3% YoY, ASMedia participates in Qualcomm ASIC projects, mass production expected in 2H27, both maintain Buy ratings. The solar industry benefits from more proactive U.S. renewable energy policy, Canghe benefits from North America cell expansion, Giga Solar, Yuanjing and Motech benefit from industry recovery, energy storage favors Delta Electronics, Shengda and Xitel, fab facility equipment favors HanTang, Marketech, Hongsu, Kinik, New Applied Materials and Topco.