Macquarie has outlined five major Taiwanese electronics stocks, highlighting companies poised to benefit from AI infrastructure spending, data center upgrades, and emerging display technologies.
The broker's selections span original design manufacturers, thermal management specialists, and power infrastructure providers. These picks reflect Macquarie's view on structural growth opportunities in Taiwan's tech landscape, especially AI-related hardware and components.
Hon Hai Precision Industry
Macquarie sees Hon Hai as a structural AI beneficiary with limited downside as long as AI infrastructure spending grows. The broker believes ODMs like Hon Hai are undervalued, trading at historical average valuations despite above-average earnings growth. New business lines like co-packaged optics could be re-rating catalysts.
E Ink
Macquarie views E Ink as an undervalued growth story, with core electronic shelf label business compounding at 20-30% annually for three years. The signage segment, ramping up in 2026, is seen as a larger long-term market opportunity than ESL itself.
AVC
Macquarie is bullish on AVC as a direct play on rising liquid cooling adoption in next-gen AI servers. The broker highlights growing content per server and share gains at Google as near-term drivers.
Wiwynn
Macquarie sees Wiwynn as a key laggard catching up, benefiting from both general server demand recovery and a stronger-than-expected AWS Trainium ramp. The broker believes the market has been too cautious on Wiwynn's dual exposure.
Delta Electronics
Macquarie is firmly bullish on Delta as a power infrastructure play, driven by surging per-rack energy consumption in AI data centers and growing adoption of high voltage direct current architecture.
This article was generated with AI support and reviewed by an editor.
