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Analysts Raise Ardentec Price Target on Strong ASIC Margin Outlook
Electronic Technology · Semiconductors · economic_daily · 2026-09-21
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Ardentec's profit outlook and price target have been upgraded as high ASIC utilization rates at its Longtan facility drive margin expansion.
What Happened
Upward Growth Cycle: Ardentec is entering a period of rising revenue and gross margins, supported by high utilization rates for ASIC orders at its Longtan plant. The company recently achieved a gross margin exceeding 40% in the second quarter, with expectations for further improvement in the third quarter.
Capacity and Utilization: The new Longtan facility began mass production in July, with monthly output projected to reach 150-200 million TWD and utilization rates between 90% and 95%. While seasonal factors may cause a slight dip in the fourth quarter, the company's overall profitability remains robust.
Earnings Upgrades: Analysts have raised their profit forecasts and price targets for Ardentec, citing the potential for ASIC order margins to exceed 56%. The company's alignment with long-term trends from major foundry clients remains a key driver for its positive outlook.
Future Outlook: Despite a seasonal slowdown in consumer electronics, Ardentec is expected to maintain gross margins above 44% in the fourth quarter. Analysts anticipate continued growth, with revenue expected to show a quarterly increase by the first quarter of 2027.
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