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Song Chuan Receives 'Strong Buy' Rating as AI Power Demand Drives Target Price to NT$500
Electronic Technology · Electronic Components · cnyes · 2026-09-11
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Song Chuan Precision sees its target price raised to NT$500 by analysts as high-power component demand surges from global AI data center expansion.
What Happened
Surging AI Demand: Global expansion of AI data centers and the need for advanced power management systems have created a favorable environment for Song Chuan Precision. The company is capitalizing on this trend by integrating its high-power electrical components into server power and data center infrastructure.
Analyst Upgrades: Two local investment firms have issued 'Strong Buy' ratings for the company, citing its strategic positioning in next-generation power architectures like solid-state transformers. The target price has been revised upward to NT$500, reflecting strong confidence in the firm's growth trajectory.
Record-Breaking Performance: Song Chuan has achieved consecutive quarterly revenue records, driven by a significant increase in the adoption of its high-voltage, high-current products. These high-end applications now represent a larger share of the company's total revenue compared to the previous year.
Robust Profitability: The company maintains a gross margin exceeding 30%, supported by the successful scaling of its high-end product lines. With continued investment in power technology, Song Chuan is well-positioned for sustained financial performance in the coming quarters.