AI power finally endorses; maintain Buy

研报英文原文证据摘录

AI power finally endorses; maintain Buy

Global Markets Research

Lite-On Technology Corp 2301.TW 2301 TT 31 July 2026

EQUITY: PC HARDWARE

RatingAI power finally endorses; maintain Buy Remains Buy

Target price2Q26 GM a strong beat, reflecting strong profitability from Increased from TWD 338.00cloud/AI products; investing to enter optical communication TWD 285.00

Action: Maintain Buy; raise TP to TWD338, implying ~62% upside Closing31 July 2026price TWD 209.00

Lite-On Tech (LOT)’s 2Q26 earnings were a strong beat, with GM jumping to 27.2% (+5.6pp q-q,

+5.1pp y-y; Fig.1), much higher than consensus of 23-24%, thanks to continued strong growth Implied upside +61.7%

from cloud/AI products (sales doubling y-y, accelerating from 70%+ y-y growth in 1Q26), as some

AI/ cloud shipments were pushed out from 1Q26 to 2Q26. Although there were some one-off Market Cap (USD mn) 14,975.9

factors behind the significantly high 2Q26 GM, management believes the average GM level (24.7%, ADT (USD mn) 228.9

or ~25%) in 1H26 could be the baseline, with upside into 2H26E (in line with our expectation). We

raise our AI/cloud growth estimates for LOT to 80-90% in 2026F, vs prior 70-80% and the company Relative performance chart

guidance of 70%+ due to thestrongdemandofTrainium3andGraviton4/5fromAWS (AMZN

US, Not rated) which is LOT’s largest customer, as well as recentdemandupsideonGB300from

neoclouds. We, hence, raise our earnings by 21.1%/18.5%/18.8% for 2026F/27F/28F (Fig.2) due

to the stronger AI/could growth and better margin profiles. For 2H26F, we believe LOT will continue

to benefit from Trainium 3’s PSU/BBU ramp-up and spec upgrades (to 8.5kW from 5.5kW, with

power rack design), the ramp-up of the new VR200’s 110kW PSU, and aforementioned GB300

order increase from neoclouds.