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Bernstein Backs Taiwan AI Supply Chain: Delta Electronics Named Top Pick, Unimicron Price Target Raised
Electronic Technology · Electronic Components · economic_daily · 2026-10-23
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Bernstein highlights the resilience of Taiwan's AI supply chain, naming Delta Electronics a top pick and raising Unimicron's price target by 28% amid market volatility.
What Happened
Market Resilience: Despite global headwinds including financing concerns, interest rate hikes, and geopolitical tensions, Bernstein notes that Taiwan’s AI supply chain has demonstrated superior resilience compared to its US and Asian peers. Analysts believe this structural strength makes Taiwanese tech hardware a standout during market corrections.
Top Picks and Upgrades: Delta Electronics has been named a top pick, with the firm maintaining an 'outperform' rating on Delta, Chroma, and Unimicron. Notably, Unimicron’s price target was raised by 28.2% to 1,270 TWD, driven by tight supply in ABF substrates and improved product mix.
Cautious Outlook on Quanta: In contrast, Quanta Computer remains rated as 'underperform' due to limited marginal value capture from server upgrades and the challenges of a high base period. Analysts suggest that the transition phase in order cycles poses a hurdle for the company's near-term profit growth.
Future Growth Drivers: Delta Electronics is expected to see significant CAGR in revenue and EPS through 2028, supported by next-generation power architecture adoption. Meanwhile, Chroma is positioned for long-term growth through rising demand for system-level testing (SLT) and high-voltage power testing solutions.