UBS Lifts Wiwynn Target to NT$7,000 on ASIC Server Ramp

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.

Wiwynn supplies cloud data-center and server equipment, with demand for AI infrastructure a key growth driver. Goldman Sachs said some projects have shifted to a consignment model under which customers supply components. While that may weigh on recognized revenue in the short term, it can reduce materials as a share of costs and improve gross margins. Revenue changes therefore should not be viewed in isolation as evidence of weaker demand.

Goldman Sachs’ latest report said it expects Wiwynn’s ASIC AI server shipments to ramp up and its GPU AI rack product portfolio to continue expanding. It maintained a “Buy” rating and a price target of NT$7,147. As of July 20, 2026, the available information did not specify the report’s publication date or disclose shipment volumes and revenue forecasts for individual products.

Wiwynn, a Wistron Group supplier of cloud data-center servers, is benefiting as hyperscalers expand AI infrastructure. Consolidated revenue reached NT$950.66 billion in 2025, up 163.7% from a year earlier, while net profit totaled NT$51.12 billion. AI products generated more than half of revenue, with ASIC systems accounting for 90% of that business, showing that operations have evolved from a reliance on general-purpose servers to a dual-engine model.

Following its February 26 earnings call, Goldman Sachs, Nomura Securities, UBS and Daiwa Capital all offered positive assessments. Institutional investors forecast revenue growth of 37% in 2026 and 20% in 2027, with EPS of about NT$330 and NT$400, respectively. On May 11, a U.S. brokerage raised its 2026–2028 EPS forecasts to NT$357.5, NT$466.8 and NT$539.4, named the stock a Top Pick, and cited expected second-half mass production of AWS Trainium 3 systems and new GPU products.