Gigabyte Technology (2376.TW): 2Q26 Beat on OpEx & FX Gains; Raise TP to NT$595 on Robust Neo-Clouds Visibility

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14 Aug 2026 13:30:35 ET │ 14 pages

Gigabyte Technology (2376.TW)

2Q26 Beat on Opex & FX Gains; Raise TP to NT$595 on Robust NeoClouds Visibility

CITI'S TAKE

Gigabyte’s 2Q26 net profit beat Citi/cons forecasts by 50%/21%, driven by

tighter opex control and non-ops, even as GPM missed on a richer AI server

mix. Mgmt. guided 2H26E revenue growth to outpace 1H26 on robust neoclouds demand, with GPM set to recover as VGA enters seasonal peak and

mix improves further. The board also approved a GDR issuance of up to 50m

shares and lifted 2026 capex guidance, reaffirming confidence in the

capacity buildout. We raise 2026E-28E earnings forecasts by 28-46% and

lift our TP to NT$595, based on c.14x 2027E EPS (rolled over from 17x 2026E

EPS) to factor in AI server-driven margin dilution. Reiterate Buy.

2Q26 results beat on opex & non-ops — Gigabyte reported 2Q26 net profit of

NT$6.6bn (+25% QoQ/+117% YoY), beating Citi/cons forecasts by 50%/21%,

primarily driven by better-than-expected opex control and non-ops. 2Q26 GPM

came in at 9.6% (-2.4ppts QoQ/+0.2ppt YoY), below expectations, mainly due to a

higher-than-expected AI server mix. That said, opex ratio of 4.0% also undershot

expectations, implying leverage embedded in scaling AI server business. Non-ops

included FX gain of c.NT$880mn, providing an additional boost to the bottom line.

2H26E guidance raised on neo-clouds demand — Mgmt. guided for 2H26E

revenue growth to outpace 1H26, mainly on the back of robust demand from neoclouds, echoing our constructive view. We now expect 3Q26 revenue growth of 8%

QoQ, with 4Q26 revenue to be further boosted by ramping AI server shipment. GPM

guidance also points to sequential improvement, supported by better mix and VGA

entering its seasonal peak. Additionally, the board approved a GDR issuance of up

to 50m shares (timing yet to be determined), which we view as preparation for future

working capital needs amid the capacity expansion. Mgmt. also raised 2026 capex

guidance to NT$28-30bn (from NT$23-25bn), reaffirming confidence in demand

visibility and the pace of capacity buildout.

n

Buy

Catalyst Watch: Upside, expires 17-AUG-26

Price (14 Aug 26 13:30)

NT$397.50

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