UBS Raises Wistron Target to NT$225 on AI Server Strength
Wistron, a major electronics contract manufacturer, has been expanding its AI server and advanced rack-system operations to offset weak demand in its traditional personal-computer business. UBS said stronger shipments of AI servers and Nvidia’s NVL72 rack systems have made the segment a key earnings driver, giving the company greater exposure to continued investment in generative-AI infrastructure.
UBS raised its earnings forecasts for Wistron for the current and following years after AI server and NVL72 rack shipments exceeded expectations. The bank said growth in the AI business was sufficient to counter persistent weakness in PCs, retained its buy rating and lifted its price target to NT$225. The supplied report did not specify the publication date or UBS’s previous target.
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The history behind this eventMorgan Stanley Lifts Wistron Target to NT$275 on AI Server Demand
Global cloud service providers are expanding AI infrastructure, sustaining demand for advanced servers and the original design manufacturers that build them. Wistron is positioned to benefit from orders from new CSP customers, a richer product mix and stronger pricing power. Its AI server business has become an increasingly important driver of revenue and earnings as hyperscalers accelerate investment in computing capacity.
Morgan Stanley said in an August 2026 report that momentum in Wistron’s AI server business should continue through 2027, supported by robust demand and new customer orders. The bank expects gross margin to improve annually as Wistron gains bargaining power in AI server manufacturing. It raised its price target on the company to NT$275 and maintained an Overweight rating.
UBS Lifts Wiwynn Target to NT$7,000 on ASIC Server Ramp
Wiwynn is a major supplier of servers to global cloud data-center operators, making its outlook closely tied to hyperscaler capital spending and the buildout of artificial-intelligence infrastructure. Unlike general-purpose GPU systems, ASIC servers are optimized for specific workloads. A production ramp for custom silicon platforms such as Trainium could therefore add a significant growth engine alongside Wiwynn’s established general-purpose server business.
UBS said in its latest report that Wiwynn’s ASIC AI server shipments are set to reach an inflection point in the second half of 2026, while demand for general-purpose servers remains robust. The brokerage expects revenue growth to accelerate during the period and operations to strengthen quarter by quarter. UBS maintained its “Buy” rating and raised its price target on Wiwynn to NT$7,000.
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