ASMedia Technology Inc. (5269 TT) (Neutral) - Core business under threat; downgrade to Neutral

研报英文原文证据摘录

ASMedia Technology Inc. (5269 TT) (Neutral) - Core business under threat; downgrade to Neutral

Global Markets Research

ASMedia Technology Inc. 5269.TW 5269 TT 12 May 2026

EQUITY: FABLESS

Core business under threat; downgrade to Neutral Rating Down from Buy Neutral

Desktop market worsening to harm core business; potential share loss to Target price

Reduced from TWD 1,700.00weigh on share price TWD 2,500.00

Downgrade to Neutral with lower TP of TWD1,700 (TWD2,500 earlier) Closing12 May 2026price TWD 1,525.00

Given AMD’s (AMD US, Not rated) share gain and higher penetration in the USB4/AMD AM5

platform, ASMedia delivered robust 2025-1Q26 results, but the impact of memory price hike is Implied upside +11.5%

emerging gradually and would significantly impact ASMedia from 2Q26F onwards, in our view.

AMD’s 1Q26 earnings call specifically mentioned that, “Wedidseedesktopsalittlebitsofterjust Market Cap (USD mn) 3,618.8

givendesktopisamoreconsumer-focusedmarket.Andsointhatmarket,it'smoreimpactedby ADT (USD mn) 61.5

someofthememorypricingandthecomponentpriceincreases(transcript)”. ASMedia

mentioned another negative that its customer is shifting some portion from AM5 chipset back to Relative performance chart

AM4 this year, potentially eroding ASMedia’s ASP, in addition to pressure on volumes.

Considering that nearly 80-90%+ of ASMedia’s total sales are PC-relevant (majority AMD), we

think AMD’s share gain over Intel (INTC US, Not rated; that we’ve highlighted since Dec-24)

might have reached its peak, against the backdrop of desktop CPU supply correction. ASMedia

is working on a non-AMD PC ODM customer, and also non-PC business such as PCIe packet

switches to diversity its customer base and reduce business concentration, but given its current