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Bernstein Bullish on Taiwan AI Supply Chain; Delta and Unimicron Get Upgrades
Electronic Technology · Electronic Components · economic_daily · 2026-10-23
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Bernstein highlights the resilience of Taiwan's tech hardware sector, upgrading price targets for Delta Electronics and Unimicron amid global market volatility.
What Happened
Resilience in AI Supply Chain: Despite global headwinds including financing concerns, Federal Reserve interest rate anxieties, and geopolitical tensions, Bernstein research highlights that Taiwan's tech hardware sector has demonstrated superior resilience compared to its U.S. and Asian counterparts.
Stock Rating Adjustments: Bernstein maintains an 'Outperform' rating for Delta Electronics, Chroma ATE, and Unimicron, with Delta Electronics named a top pick. Conversely, Quanta Computer is rated 'Underperform' with a price target of 290 TWD, citing challenges in the transition period and limited marginal value capture.
Performance of Delta and Chroma: Delta Electronics is benefiting from an increased revenue mix in power and components, which supports its gross margins. Chroma ATE has delivered strong third-quarter results driven by robust demand for energy storage systems and semiconductor testing equipment.
Unimicron Price Target Hike: Due to tight supply in ABF substrates and improved pricing power, Unimicron is expected to see sequential margin expansion. Consequently, Bernstein has significantly raised its price target for Unimicron from 990 TWD to 1,270 TWD.