Reported 8 months ago
Morgan Stanley analysts have indicated that NVIDIA's Blackwell AI GPU requires 2-3 times longer testing time, leading King Yuan Electronics (2449) to increase capital expenditure to seize opportunities, with profit potential prompting a target price increase to 140 NTD; conversely, the market's expectations for Advanced Semiconductor Engineering's (3711) AI testing business are deemed too high, resulting in a downgrade to 'Neutral'. The report also highlights that despite increased testing expenditure forecasts by Advanced Semiconductor Engineering, the prospects for securing NVIDIA AI GPU testing orders still remain uncertain. In contrast, King Yuan Electronics is expected to maintain a high market share in the AI GPU testing business, with significant revenue growth anticipated in the fourth quarter of 2024.
Source: YAHOO