Hon Precision Posts Record Revenue on AI Chip Demand; Citi Raises Target
Hon Precision supplies semiconductor testing equipment, and its business momentum is closely tied to demand for advanced chip testing. Accelerating capacity expansion for AI GPUs and custom ASICs is boosting demand for both testing equipment and liquid-cooling solutions, making the company an important gauge of AI infrastructure capital spending.
Hon Precision posted record monthly revenue in June, driven mainly by strong demand from AI GPU and ASIC customers and steady sales of liquid-cooling products. Citi said the improving product mix should support gross margins and long-term growth. It assigned the stock a Buy rating and raised its price target to NT$11,000.
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The history behind this eventAI and CPO Demand More Than Doubles Hon. Precision Profit; Goldman Raises Target to NT$5,700
Hon. Precision (7769), a semiconductor testing equipment and automation integrator, is benefiting from stronger demand for testing AI server, HPC and ASIC chips. As chip power consumption rises and thermal management becomes more challenging, system-level testing is gaining importance. The company’s further expansion into the CPO supply chain is a key reason Goldman Sachs sees strong medium- to long-term growth potential.
Hon. Precision said on March 10 that 2025 revenue rose 116.34% year on year to NT$30.271 billion, while net profit after tax climbed 133.9% to NT$12.362 billion. EPS reached a record NT$75.71. Goldman Sachs reiterated its “buy” rating on March 13 and raised its price target to NT$5,700 from NT$5,000. It also projected that capacity would grow by about 17% in 2026.
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