Full power on the bright AI avenue: Riding on upgrades in AI/HPC chips and server power, with CPO test joining the lineup; resume at Buy

Research evidence excerpt

Full power on the bright AI avenue: Riding on upgrades in AI/HPC chips and server power, with CPO test joining the lineup; resume at Buy

Global Markets Research

Chroma ATE Inc. 2360.TW 2360 TT 24 July 2026

EQUITY: TECHNOLOGY

RatingFull power on the bright AI avenue From Suspended Buy

Target priceRiding on upgrades in AI/HPC chips and server power, From N/A TWD 2,845.00

with CPO test joining the lineup; resume at Buy

Closing price TWD 2,125.00 22 July 2026Resume coverage at Buy with TP of TWD2,845, implying ~34% upside

We resume coverage of Chroma with a Buy rating and a target price of TWD2,845, based on 38x Implied upside +33.9%average 2027-28F EPS of TWD74.9. Our target P/E multiple is at the higher end of Chroma’s

historical trading band of 14-58x, which we view as reasonable given a 39% net earnings CAGR Market Cap (USD mn) 27,951.6

through 2026-28F. The stock trades at 32x 2027F basic EPS of TWD65.6, compared to semi ADT (USD mn) 217.9

backend equipment/test interface vendors (Bloomberg consensus 2027E average P/E: 37x) and

data center power peers (average: 27x). Chroma is a testing equipment maker primarily serving

semi/photonics (38% of 2026F consolidated revenue) and power electronics (38%) customers. In Relative performance chart

semi/photonics, we expect Chroma to ride on the secular testing tailwinds from increasing design

complexity and larger footprints particularly in AI/HPC chips, as well as the emergence of co-

packaged optics (CPO) test insertions as a longer-term driver. In test instrument & automatic testing

system (ATS), we believe Chroma is well-positioned to monetize the transition of the AI server

power architecture toward high-voltage direct current (HVDC; ±400V or 800V) power racks. We