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Aletheia Bullish on Google TPU Growth, Sets 10,000 TWD Target for EMC
Electronic Technology · Electronic Components · economic_daily · 2026-10-05
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Aletheia Capital highlights strong growth in the PCB and CCL sectors driven by Google's TPU, assigning a buy rating and a 10,000 TWD price target to EMC.
What Happened
Industry Growth Drivers: Aletheia Capital's latest report highlights the significant growth potential for the PCB and CCL sectors, driven by the rapid expansion of Google's Tensor Processing Units (TPU). The firm anticipates that the supply chain will benefit from sustained demand through 2028, potentially leading to long-term contracts similar to those seen in the memory industry.
TPU Shipment Outlook: The report forecasts that Google's total TPU shipments will more than double between 2025 and 2028, rising from 3.6 million units to 12 million units. As the value of next-generation ASIC components increases, the total addressable market for PCBs is expected to triple between 2026 and 2029.
EMC's Competitive Edge: Elite Material Co. (EMC) is positioned as a primary beneficiary due to its leadership in high-end CCL and increasing market share with major clients like Google, AWS, and AMD. Analysts expect TPU and 800Gbps switch products to serve as key profit drivers, further supported by product mix optimization and improved margins.
Analyst Price Target: Aletheia Capital has initiated a 'Buy' rating on EMC with a price target of 10,000 TWD, based on a 30x P/E ratio. This target ranks second among institutional analysts, trailing only Goldman Sachs' 10,200 TWD projection, reflecting strong institutional confidence in the company's future performance.