Wistron (3231 TT) Buy: Growth momentum sustainable from operating scale [Correction]

Research evidence excerpt

11 May 2026

Wistron (3231 TT)

Equities

Computers & Peripherals

Buy: Growth momentum sustainable from operating scale

[Correction]

Taiwan

◆ 1Q26 OP beat, but FX losses resulted in EPS miss

MAINTAIN BUY

◆ Sustained earnings growth driven by AI server demand

◆ Maintain Buy but trim TP to TWD180 (from TWD190)

1Q26 OP beat but EPS missed from FX loss: Wistron’s GM of 5.2% missed

HSBCe/consensus by 41bps/36bps mainly on robust sequential growth in Wistron’s

margin-dilutive GB rack server business, while increased operating leverage resulted in a

stable OPM of 3.4% (vs. HSBCe/consensus of 3.3-3.4%). Operating profit of TWD29bn,

up 14% q-o-q and up 92% y-o-y, beat HSBCe/consensus by 9%/15%. Pre-tax profit of

TWD24bn was 13% below HSBCe due to non-op losses from FX valuation losses.

Quarterly EPS of TWD3.06 missed HSBCe by 12%.

AI momentum held up well: Thanks to Dell’s record-high backlog of USD43bn as of

FY4Q26 (Feb-Q), Wistron is seeing GB300 rack shipment growth sustaining well into

2Q26. Besides Dell, Wistron is also engaging with multiple other GPU server customers

across enterprise, sovereign and neoclouds. Although we believe Dell will continue to be

the major driver this year, we are expecting some diversification from 2027 onwards.

Regarding recent VR rack delays, Wistron indicated that there’s currently no change to

customer orders and forecasts, but management expects a potential shift to more GB if

the delay turns out to be longer than expected. However, management now expects

2Q26 PC shipments to be down 5-10% q-o-q, while April shipments are now tracking

ahead. We therefore expect 2Q26 PC shipments to be slightly down 5% q-o-q. Overall,

we raise Wistron’s GB server shipments for 2026 to 14.8k (from 11k previously); therefore

we now forecast Wistron’s 2026 sales to grow c65% y-o-y thanks to growing GPU server

demand (vs. 45% y-o-y previously).

Profitability intact, but memory pricing will continue to twist margin profiles: In

contrast to Wiwynn, which is still trying to land consignment agreements with key

customers (see AI and general server growth outlook still intact, 8 May 2026), Wistron’s

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