Delta Electronics: Near-term concerns seem overdone

Research evidence excerpt

Delta Electronics: Near-term concerns seem overdone

Global Markets Research

Delta Electronics 2308.TW 2308 TT 30 July 2026

EQUITY: PC HARDWARE

RatingNear-term concerns seem overdone Remains Buy

Impact of AI model transition and cost pressure are likely to be mitigated Target price

Reduced from TWD 2,650.00in 2H26F; new HVDC products remain intact; reaffirm Buy TWD 2,800.00

Action: Maintain Buy; lower TP to TWD2,650, implying ~73% upside Closing30 July 2026price TWD 1,530.00

We lower our 2026F/27F/28F earnings by 0.9%/4.3%/5.4% to reflect Delta’s rising opex,

driven by its growing service support globally and its accelerated AI capex depreciation (the Implied upside +73.2%

company has shortened the depreciation horizon from 3-5 years to 3 years). Although

Delta’s 2Q26 sales/GM were slightly below consensus expectations, due to nVidia’s (NVDA Market Cap (USD mn) 122,299.4

US, Not rated) GB-to-VR model transition, rising cost burden and some one-off issues (such ADT (USD mn) 806.9

as shipment delays on component shortage), we believe those concerns should be

mitigated in 2H26F. We observed recently GB300orderupsidefromneoclouds, Relative performance chart

especiallyxAI, for 2H26F until 1Q27F; we believe that both Delta and Lite-On (2301 TT, Buy)

will be among the key beneficiaries of those new orders for power supply units (PSU). We

expect Vera Rubin to ramp up more meaningfully by end-2026F for PSUs. Regarding

prices and GM, we believe Delta will pass on the cost burden more effectively from

3Q26F, through across-the-board price increases. Regarding market concerns about 800VDC

delay (news), we do not expect 800VDC will contribute meaningfully in 2H26-2027F, as the

related safety regulations are not ready globally, not to mention the uncertain Kyber