2025-10-09 02:00Summary of Investor Presentation on Greater China Technology Hardware: AI Tech Industry Overview - The presentation focuses on the Greater China Technology Hardware sector, particularly in AI technology hardware upgrades [4][5][6] - The overall industry view is categorized as "In-Line" [1] Core Insights and Arguments - AI GPU and ASIC Server Upgrades: There are significant opportunities in AI GPU and ASIC server/rack design upgrades, with major design upgrades anticipated for the GB300, Vera Rubin platform, and Kyber architecture [4][5] - Enhanced Computing Power: AI ASIC servers are expected to enhance computing power and increase rack density, with demand growth projected for 2026-2027 [4][5] - Power Solutions: Upgrades to 800V HVDC power architecture and the growing adoption of liquid cooling solutions are highlighted as key trends [4][5] - PCB/Substrate Capacity Expansion: A wave of capacity expansion in PCB/substrate is necessary to support ongoing design upgrades [4][5] - Data Network Improvements: Upgrades in data and power interconnects will lead to increased data network transmission speed and capacity [4][5] - Consumer Electronics Demand: Demand in consumer electronics remains lukewarm, with anticipation for upcoming foldable iPhone models in the second half of 2026 [4][5] - AI PC Proliferation: The proliferation of AI PCs is expected to take time, indicating a gradual market adoption [4][5] - Supply Chain Reorientation: The status of supply chain reorientation and its potential impacts are noted as important considerations [4][5] Key Stock Ideas - AI Server Components: Companies such as Delta Electronics, AVC, BizLink, King Slide, Chenbro, and Gold Circuits are identified as key players in AI server components [4][5] - AI Server ODM/OEMs: Wistron, Hon Hai/FII, Quanta, Lenovo, and Accton are highlighted as significant ODM/OEMs in the AI server space [4][5] Valuation Comparison - A detailed valuation comparison of various companies within the sector is provided, including metrics such as EPS, P/E ratios, P/B ratios, and trading volumes [5] - Notable companies include: - Delta Electronics: Closing price of 942.00 with a target of 1111.0 and a P/E ratio of 21.05 for 2025 [5] - Hon Hai: Closing price of 226.50 with a target of 250.0 and a P/E ratio of 13.83 for 2025 [5] - Foxconn Tech: Closing price of 70.60 with a target of 54.00 and a P/E ratio of 2.93 for 2025 [5] Additional Important Points - The report emphasizes the potential for share price upside in the context of the discussed upgrades and market trends [4][5] - The overall sentiment reflects cautious optimism regarding the future of AI technology hardware in Greater China, with specific attention to the evolving landscape of consumer electronics and server technology [4][5]