AI Server Demand Drives PCB and CCL Upgrades, Foreign Brokerages Raise Targets on Five Taiwan Stocks
AI server and data center operators are shifting to high-layer-count HDI PCBs and low-loss CCL rated M7 or above to boost transmission speeds. Capacity expansion takes time, while cloud service providers are willing to pay more for shorter lead times, giving materials suppliers and board makers greater pricing power. Goldman Sachs consequently raised its 2026–2028 EPS forecasts for Elite Material, Taiwan Union Technology, Gold Circuit Electronics, Zhen Ding Tech and ITEQ by 17%–29% on April 20.
On May 20, Goldman Sachs reiterated its “buy” rating on Taiwan Union Technology and raised its price target to NT$1,888 after the company planned a June price increase. Morgan Stanley lifted its price target for Gold Circuit Electronics to NT$1,310 on May 13, citing a first-quarter gross margin of 34.8%. Citi raised its Taiwan Union Technology target again to NT$1,950 on June 18 and increased its 2026, 2027 and 2028 earnings forecasts by 14%, 25% and 24%, respectively.
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The history behind this eventGoldman Raises Elite Material Target as AI Server Demand Tightens CCL Supply
Copper-clad laminate, or CCL, is a critical input for printed circuit boards used in AI servers. Faster processors, denser board designs and higher-speed data transmission require more advanced materials, lifting both CCL content and value per system. The simultaneous rollout of next-generation platforms from Amazon Web Services, Nvidia and Google has made limited high-end CCL capacity a key constraint for the broader AI infrastructure supply chain.
In its latest assessment dated July 30, 2026, Goldman Sachs said demand from Trainium 3, Nvidia’s Vera Rubin and Google’s TPU v8 had effectively booked out high-end CCL capacity for the next several years. The bank raised its price target for Elite Material Co. to NT$10,200 and retained a Buy rating. Trainium 3-related CCL shipments are projected to rise more than 50% sequentially in the third quarter, with Rubin production ramping in August and Google TPU shipments following in September.
Goldman Lifts Elite Material, Iteq Targets as AI Drives CCL Price Hikes
Copper-clad laminate, or CCL, is a core input for printed circuit boards, and demand for premium grades is accelerating as AI servers, high-speed switches and advanced accelerators require faster data transmission and better thermal performance. Goldman Sachs estimates high-end CCL demand will grow at a 96% compound annual rate from 2025 through 2028, compared with 22% growth in supply capacity. The widening gap is tightening availability and giving Taiwanese producers Elite Material and Iteq greater pricing power.
On July 20, 2026, Goldman Sachs reiterated buy ratings on Elite Material and Iteq, raising its price targets to NT$9,500 from NT$6,000 and NT$2,860 from NT$1,888, respectively. Following an initial increase in April, the bank expects prices for M7-and-above CCL to climb another 10% to 15% quarter on quarter in late third quarter or early fourth quarter. Volume ramps for AWS Trainium 3, Nvidia Vera Rubin in August and Google TPU shipments in September are expected to lift third-quarter gross margins to 36.5% and 32.3%, respectively.
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