Hon Hai (2317 TT,NT$237.50 ) - AI demand not impacted by Kyber delay in 2027

Research evidence excerpt

Hon Hai (2317 TT,NT$237.50 ) - AI demand not impacted by Kyber delay in 2027

Taiwan Equity | Tech

Company Snapshot

Fubon Research Hon Hai (2317 TT)

July 8, 2026

AI demand not impacted by Kyber delay in 2027

Buy

Price Target Retain Buy, cut target price to NT$323, 36% upside

NT$237.50 NT$323 1. AI demand not impacted by Kyber delay in 2027

○Initiating coverage ○Visit notes

2. Foldable smartphone volume, gross profit to impact 2H26 performance

○Company update ○Earnings revision

3. 2Q26 sales of NT$2,513bn, higher than consensus, Fubon’s estimate

●Earnings preview ○Rating change

Shares out. (mn) 14,028.6

AI demand not impacted by Kyber delay in 2027 Mkt cap (NT$mn) 3,331,790

Mkt cap (US$mn) 103,907 SemiAnalysis released a series of analyses on its X platform, pointing out that nVidia's next-

FINI holding (%) 39.81 generation rack architecture, Kyber NVL144, originally slated to succeed Blackwell Ultra,

Local IM holding (%) 3.56 may be delayed by more than a year to 2028 due to key hardware manufacturing challenges.

Directors holding (%) 0.02 Furthermore, the originally planned NVL72×2 back-to-back architecture and the 4-

52-week high (NT$) 300.06

processor Rubin Ultra have also been reportedly canceled, posing challenges to nVidia's

52-week low (NT$) 150.87

Day-trading % 31.69 next-generation AI GPU strategy. However, this does not affect our overall view on AI

servers. Most importantly, our model assumptions for 2027 already preclude the use of

Kyber rack architecture.

ESG Rating 8 Industry Rank 3/94

Foldable smartphone volume, gross profit to impact 2H26 performance

The assembly difficulty of foldable smartphones is far greater than that of regular

smartphones (including the bonding of high-strength hinges and flexible glass). As an