Morgan Stanley Raises Auras Target as AI Server Liquid-Cooling Demand Grows
Rising AI chip power consumption and rack density are driving liquid cooling beyond AI GPU servers into ASICs, power modules, CX-9 networking equipment and CPO switches. ASICs typically carry a higher unit value, increasing the value of their thermal modules. Auras Technology, which can mass-produce cold plates, manifolds and chassis, is a major beneficiary of AI infrastructure upgrades.
On May 15, 2026, Morgan Stanley maintained its Overweight rating on Auras after the company’s first-quarter results beat expectations. It raised its price target to NT$3,333 from NT$2,950 and lifted its 2026–2028 EPS forecasts to NT$96.5, NT$145 and NT$191.8, respectively. First-quarter gross margin reached 29.8%, while servers and networking equipment increased their share of revenue to 66.4%.
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The history behind this eventStrong AI Server Cooling Demand Brightens Asia Vital Components’ Second-Half Outlook
Asia Vital Components is a supplier of advanced thermal solutions for AI servers, including liquid-cooling systems, cold plates and thermal modules. As NVIDIA’s platform moves from Blackwell to Rubin, rising chip power consumption and rack density are driving up both demand and prices for liquid-cooling products, providing an important boost to the company’s revenue and profit mix.
Asia Vital Components said on July 7, 2026, that June revenue reached NT$17.618 billion, up 66.11% from a year earlier. Second-quarter revenue was about NT$49.1 billion, bringing the first-half total to NT$98.159 billion. TechNews on July 8 cited an unnamed U.S. investment firm as saying that several ASIC projects were due to launch in the second half and that operations could outperform the first half.
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