Earnings uptrend backed by pricing tailwinds: Google’s AI demand in spotlight; industry pricing dynamics remain favorable

研报英文原文证据摘录

Earnings uptrend backed by pricing tailwinds: Google’s AI demand in spotlight; industry pricing dynamics remain favorable

Global Markets Research

Elite Material 2383.TW 2383 TT 30 June 2026

EQUITY: TECHNOLOGY

RatingEarnings uptrend backed by pricing tailwinds Remains Buy

Target priceGoogle’s AI demand in spotlight; industry pricing Increased from TWD 6,880.00dynamics remain favorable TWD 5,285.00

Action: Reiterate Buy; raise TP to TWD6,880, implying ~31% upside Closing26 June price2026 TWD 5,255.00

Elite Material’s (EMC) strong QTD revenue is a clear manifestation of strong AI demand (notably

Google Ironwood and AWS Trainium 3), in our view, and more importantly, a smoother-than- Implied upside +30.9%

expected pricing uplift. We estimate 2Q26 revenue will grow +37% q-q with GM likely to further

expand to 32.4%. While AI PCB/CCL industry supply is already tight loaded by existing projects, Market Cap (USD mn) 59,047.8

we note that most new AI platforms (e.g. Google TPU 8t/8i and nVidia VR) would only start to ADT (USD mn) 393.2

ramp up production in 3Q26, spanning not only main boards but also large peripheral

boards carrying content such as CPUs and switches (usually >20L; Fig.1). This might Relative performance chart

further worsen the supply/demand imbalance into 2H26F, driving potentially another round of

price actions by CCL makers as they strategically allocate more resources to more profitable AI

PCB customers. We believe EMC is best positioned to benefit given its large capacity scale, and

we observe that the company is mulling extra capacity expansion in China beyond 2027 (subject

to the board approval; Fig.2). Although we are aware of EMC’s attempts to broaden its business