News / Taiwan / economic_daily
Morgan Stanley Maintains Bullish Stance on Alchip, Sets Price Target at NT$5,888
Technology Services · Internet Software/Services · economic_daily · 2026-10-14
3661
Morgan Stanley remains optimistic about Alchip's growth, citing strong momentum from AWS Trainium projects and potential new US client wins ahead of Q3 earnings.
What Happened
Operational Outlook: Morgan Stanley maintains an 'Overweight' rating on Alchip, driven by the robust momentum of the AWS Trainium AI chip project. With TSMC expected to expand its 3nm capacity, Alchip is well-positioned to maintain stable margins and market share in the high-performance computing (HPC) sector.
Key Catalysts: Analysts have identified three primary catalysts for Alchip’s future growth: progress with new US-based clients, the upcoming AWS re:Invent conference, and the scale of the 2028 Trainium4 project. These milestones are expected to serve as significant drivers for the company's mid-to-long-term performance.
Project Potential: Looking toward 2028, Alchip is set to benefit from the 2nm-based Trainium4 project, with revenue projections reaching between US$8 billion and US$12 billion. Supply chain checks suggest that if AWS allocates additional capacity, the financial impact of this project could significantly exceed current market expectations.
Client Diversification: Beyond its partnership with Amazon, Alchip is actively pursuing design service opportunities for Google’s TPU and other US-based HPC clients. Potential collaborations in switch network products and the NVLink Fusion ecosystem underscore the company's expanding influence in the AI chip design services market.