AI business opportunities ignite, King Yuan Electronics (2449) demonstrates strong operational momentum, with a target price reaching a new high

Vanguard Electronics (2449) has seen rapid growth in demand for AI processors and specialized application chips (ASICs). The company’s fundamentals are impressive, recently receiving upgraded ratings and target prices from multiple U.S. investment firms, driving the stock price to a record high of NT$166.5. Trading volume has also increased to 100,000 shares.

Better-than-expected earnings growth, EPS hits record high for the period

Vanguard Electronics’ performance in the first half of this year has been solid, with total revenue reaching NT$15.677 billion, a 25.22% year-over-year increase, demonstrating the business opportunities brought by the AI wave. On the profit side, although operating margin was 23.59%, down 0.42 percentage points year-over-year, net profit after tax reached NT$6.465 billion, a remarkable 97.65% increase, with EPS hitting NT$5.29, setting a new record for the same period.

Capital expenditure surges, preparing for new business opportunities

To capture strong orders for AI processors and ASIC chips, Vanguard Electronics has twice raised its capital expenditure budget for this year to NT$37 billion, a 37% increase, setting a record for the company. This large-scale investment reflects the company’s optimistic outlook on future growth prospects.

Foreign investors optimistic about Taiwan supply chain position

Recent research reports from U.S. investment firms specifically highlight Taiwanese partners in NVIDIA’s Asian supply chain, including four key companies such as Vanguard Electronics. The reports predict that NVIDIA’s new Vera Rubin chip has completed multiple design versions at TSMC, with mass production expected in the second quarter of next year and server shipments increasing in the third quarter. The chip is expected to boost Vanguard Electronics’ revenue contribution by 40%. Additionally, foreign investors have rated Vanguard Electronics as “Better than the Market” and upgraded the China-Hong Kong semiconductor industry outlook to “Attractive,” demonstrating market recognition of its growth potential.

Both domestic and foreign investors increase holdings, market outlook bright

From a chip holdings perspective, foreign investors bought an additional 2,288 shares of Vanguard Electronics for the third consecutive trading day last Friday. Institutional investors also bought continuously for six days, indicating a consensus of confidence among institutional players. Driven by the continued fermentation of AI themes and strong fundamentals, Vanguard Electronics(2449) remains a focus of market attention.