AI and CPO Demand More Than Doubles Hon. Precision Profit; Goldman Raises Target to NT$5,700

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.

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.