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IBK Securities Initiates Coverage on TLB, Citing Nvidia CPU Tailwinds
Electronic Technology · Electronic Components · yonhap_finance · 2026-08-25
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IBK Securities has initiated coverage on TLB with a 'Buy' rating, projecting significant earnings growth driven by the supply of SOCAMM2 boards for Nvidia CPUs.
What Happened
Coverage Initiation: IBK Securities has initiated coverage on TLB with a price target of 53,000 KRW and a 'Buy' rating. The firm highlights the company's potential to benefit from the mass production of Nvidia's new 'Vera' CPU.
SOCAMM2 Supply: TLB is a key supplier of SOCAMM2 memory module boards, holding an estimated 20% market share. As these boards command prices roughly three times higher than standard server boards, they are expected to significantly boost profitability.
Earnings Impact: With the adoption of Vera CPUs in data centers, SOCAMM2 revenue is set to be fully reflected in the company's financial results. A sharp increase in the order backlog for the second quarter already signals this growth trend.
Margin Expansion: The contribution of SOCAMM2 to total revenue is projected to rise to 30% by 2027. This shift is expected to drive an increase in the blended average selling price and overall margin improvement for the company.