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Zhen Ding Tech Pivots to AI Infrastructure, Analysts Set 750 TWD Price Target
Electronic Technology · Electronic Components · economic_daily · 2026-10-15
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PCB giant Zhen Ding Tech is successfully shifting from consumer electronics to AI infrastructure, with analysts bullish on its ABF substrate and HDI growth.
What Happened
Strategic Business Pivot: PCB leader Zhen Ding Tech has successfully transitioned from its traditional role in the Apple supply chain to become a key player in the AI high-performance computing sector. The company has expanded its portfolio to include AI server HDI, optical module mSAP, and ABF substrates, significantly enhancing its profit margins.
AI Growth Trajectory: Driven by surging demand for AI servers and high-performance computing, Zhen Ding's AI-related revenue share is projected to grow from 21.6% to nearly 50% by 2028. This growth is supported by major projects from Nvidia, MediaTek, and increasing demand from the Chinese AI market, with momentum expected to last through 2030.
Bullish Analyst Outlook: Foreign institutional investors have upgraded their outlook on Zhen Ding, citing the severe supply-demand imbalance in high-end ABF substrates. With a new price target of 750 TWD, analysts have significantly raised EPS forecasts for 2027 and 2028, reflecting a re-rating of the company as an AI infrastructure growth stock.
Strong Operational Momentum: The company reported record-breaking revenue for September, signaling a robust outlook for the fourth quarter. Given the current super-cycle in the ABF substrate industry, market observers believe the stock is currently undervalued and poised to surpass its previous historical highs.