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Analysts Raise Price Target for AVC as Liquid Cooling Demand Surges
Electronic Technology · Electronic Components · economic_daily · 2026-09-23
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AVC is seeing improved profit outlooks as rising demand for AI server liquid cooling and higher-margin cold plate designs drive market share gains.
What Happened
Earnings Outlook Upgrade: Driven by robust customer demand and rising average selling prices for cold plates, analysts have upgraded their profit forecasts and price targets for AVC. The company's improved product mix and higher-than-expected market share in VR platform GPU cold plates are key drivers for this positive revision.
Liquid Cooling Trends: The adoption of liquid cooling in AI servers is accelerating, with a clear trend toward higher-specification components. New designs for VR platforms, including micro-channel cold plates and diamond-copper materials, are significantly enhancing thermal conductivity and boosting unit prices.
Competitive Positioning: AVC maintains a dominant position in the liquid cooling market for switch trays and is expanding its footprint with double-sided cold plate designs. As cooling requirements extend to power supplies and network interface cards, the company is well-positioned for strong revenue growth starting in late 2026.
Long-term Revenue Drivers: Analysts project that liquid cooling solutions will account for over half of AVC's revenue by 2027, with ASIC-related income expected to surpass GPU-related revenue. Further upside is anticipated through 2028 as the company expands into CPU/LPU racks, CPO, and 1.6T switch technologies.