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Goldman Lifts Elite Material, Iteq Targets as AI Drives CCL Price Hikes

1 reports · First detected 2026-07-20 · Last active 2026-07-20

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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1 original reports
FINANCE.TECHNEWS.TW 2026-07-20
看好下半年迎第二波漲價！高盛上修 CCL 雙雄目標價最高至 9,500 元

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The history behind this event
AI Server Demand Drives PCB and CCL Upgrades, Foreign Brokerages Raise Targets on Five Taiwan Stocks2026-06-18 · 4 reports · similarity 0.80

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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