Morgan Stanley Raises KYEC Price Target to NT$388 on Strong AI Demand

King Yuan Electronics Co., a major Taiwanese semiconductor testing company, focuses primarily on final chip testing. As AI server deployments accelerate, testing demand for AI GPUs, ASICs and CPUs is rising in tandem. That has made testing capacity a critical part of the supply chain and improved the visibility of KYEC's growth outlook.

Morgan Stanley forecast in its latest report that KYEC's revenue will rise 40% in 2026 from a year earlier and raised its price target to NT$388. The bank also expects the company to increase its 2026 capital expenditure significantly to expand testing equipment and capacity more quickly as AI chip testing orders continue to grow.