J.P. Morgan Taiwan FTM 6 Aug 26 PCs and Servers; ASPEED Technology Inc.; GlobalWafers Co., Ltd; Parade Technologies; Chunghwa Telecom Co., Ltd and More

Research evidence excerpt

Asia Pacific Equity Research

Taiwan First to Market

06 August 2026

Top Stories

PCs and Servers (Albert Hung/Gokul Hariharan)

Read-through from AMD 2Q26 takeaways

Key takeaways for the Asian PC/Server supply chain from AMD’s 2Q26 earnings call (AMD US, Neutral, covered by Harlan

Sur) were: (1) stronger-than-expected 2Q26 datacenter sales are up 16%/107% QoQ/YoY, driven by 70% YoY CPU sales

growth and more-than-double Instinct revenue growth; (2) management guided server CPU and datacenter AI sales to grow

strong double digit QoQ in 3Q26 and accelerating growth into 4Q26 as more supply comes through and MI450 ramps up; (3)

management guided to 80%+ YoY server CPU sales in 2H26, accelerating from 70% YoY in 1Q, and 70%+ YoY growth in

2027; (4) management reiterated its recently-raised long-term server CPU TAM to US$220bn+ by 2030 (vs. US$120bn target

back in May), representing a 50%+ CAGR, which bodes well for CPU plays; (5) initial shipments of Helio racks in 3Q, with a

more meaningful step-ups into 4Q26 and 2027, serving as the key drivers of the substantial growth outlook of datacenter AI

business; (6) management guided to slight QoQ growth of Client sales and strong double digit QoQ delcine of gaming sales in

3Q26 due to end demand weakness and late product cycle. Overall, AMD’s upbeat datacenter CPU and accelerator outlook

underpins our view on strong U.S. CSP spending and upward order revisions across the server supply chain. In contrast, the

weakening 2H26 PC demand echoes our cautious view on the PC sector. In the server space, we are positive on ASPEED,

Wiwynn , Lotes and Delta. Other potential beneficiaries include Unimicron and Tripod (both covered by Jerry Tsai). In the PC

space, we remain cautious on Micro Star and Compal. PC semi vendors could also suffer from the demand weakness.

ASPEED Technology Inc. (Albert Hung) (5274 TT, OW)

Supply unlock in 2H26 underpins sustained outperformance; OW

Key takeaways from ASPEED’s 2Q26 earnings included: (1) record-high 2Q26 GM, partly offset by higher opex; (2)

management reiterated 3Q26 revenue guidance of NT$4.1–4.3bn and a GM range of 67%–68%, but strong July revenue

…