News / Taiwan / economic_daily
Morgan Stanley Bullish on AI Server Supply Chain as Cloud Giants Boost Capex
Electronic Technology · Computer Peripherals · economic_daily · 2026-08-05
2368, 3037, 3231, 6669, 8046
Morgan Stanley highlights strong capital expenditure plans from US cloud giants, favoring five Taiwanese suppliers including Wistron, with price target hikes.
What Happened
Cloud Capex Outlook: Morgan Stanley's latest report indicates that capital expenditure forecasts from major US cloud service providers (CSPs) remain robust, signaling sustained demand for AI infrastructure. Despite rising component costs, CSPs are prioritizing increased spending over reducing server procurement, which has alleviated investor concerns regarding market growth.
Long-term Demand Visibility: While most CSPs have not provided specific guidance for 2027–2028, industry leaders like Amazon have hinted at extraordinary demand levels. Amazon notably raised its 2026 capital expenditure budget to $220 billion, underscoring the ongoing momentum in global AI hardware investment.
Wistron's Growth Potential: Wistron is highlighted as a key beneficiary due to its role as a primary assembly partner for NVIDIA and AMD. With the company expanding its AI server business into L10 and L11 segments and gaining new customers, Morgan Stanley has raised its price target to NT$275, citing improved profitability and attractive valuation.
Supply Chain Beneficiaries: Beyond Wistron, the report identifies Wiwynn, Gold Circuit Electronics, Unimicron, and Nanya PCB as top picks. These firms are expected to capitalize on the surging demand for high-end servers, specialized PCBs, and ABF substrates driven by the ongoing AI and cloud computing boom.