Hon Precision Rides Strong AI and CPO Demand as Morgan Stanley Lifts Target Above NT$10,000
Hon Precision primarily supplies semiconductor testing equipment. It is benefiting as generative AI fuels demand for advanced packaging, high-performance computing and co-packaged optics, or CPO, making equipment orders and capacity utilization key growth drivers. Morgan Stanley believes the company is positioned to capture opportunities in AI, CPO and semiconductor testing, with earnings visibility extending through 2028.
Morgan Stanley recently raised its price target for Hon Precision to NT$10,008, making the company a potential member of Taiwan’s rare group of stocks trading above NT$10,000. Hon Precision is expanding capacity to meet strong demand for AI equipment from 2026 through 2028. The related testing equipment is expected to be supplied progressively to major packaging and testing companies in Taiwan and South Korea starting in the third quarter of 2026.
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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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