Global Unichip Corp.: Solid AI/auto pipeline outlook intact with attractive valuation

研报英文原文证据摘录

Accessible version

Global Unichip Corp.

Solid AI/auto pipeline outlook intact with

attractive valuation

Maintain Rating: BUY | PO: 7,000 TWD | Price: 3,805 TWD

2Q26 sales strength offset mild margin decline

31 July 2026

2Q26 sales were up 21% QoQ, beating BofAe/street +5%/+11% QoQ, mainly driven by

strong NRE revenue (+41% QoQ) as advanced node projects taped out and solid turnkey

(+18% QoQ) with cloud chipsets ramping mainly Google CPU. GMs/OpMs declined by

570/390bps QoQ to 21.5%/12.1% as mix shifted to lower margin NRE milestone. With

sales strength more than offsetting margin drop, EPS came in above at NT$11.61.

Equity

Sustained growth in 2H26 on diverse growth catalysts

We expect GUC’s 3Q26 sales to grow by 11% QoQ, with strength led by turnkey on the

back of Google’s Axion CPU further ramp for more AI applications and healthy demand

for BMC and SSD controller, offsetting lower NRE off a high 1H26 base. As mix shifts

toward lower margin turnkey, 3Q26 GM could edge down to 20.4% but still resilient as

compared with similar high volume AI projects considering the nature of the business.

With growth diversifying across server CPU and AI accelerator projects and better 3nm

wafer supply from TSMC, we now model its sales +71% YoY in '26. (was +63% YoY)

Solid AI/auto pipelines support sales through 2028

GUC’s sales could grow at +74% CAGR from 2026-’28 on sustained and strong outlook

for AI/auto pipelines supported by its well-executed design and capacity securing

capability. We estimate server CPU to contribute around US$700mn in 2026 and

US$1.5bn+ in 2027, and the follow on Google CPU is on track for tape out in 1H27. AI5

is also on track to ramp in 2H27 while TSMC/GUC should lead in the AI6 chipset design.

Firmer flagship project visibility warrant valuation upside

We lift our 2026 EPS from NT$42.61 to NT$47.62 given stronger-then-expected outlook

in both turnkey and NRE, and keep 2027/28 EPS largely unchanged at NT$91.68/168.31.

Maintain Buy with unchanged NT$7,000 PO based on 50x 2H27-1H28 P/E (vs 10-70x

2013-26 range) and current valuation is undemanding backed by 88% earnings CAGR.

Estimates (Dec) (NT$)

Net Income (Adjusted - mn)

EPS

EPS Change (YoY)

…