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Nomura raises Wiwynn price target on strong AMD MI450 and general server outlook

Tuesday, March 3, 2026 at 03:39 AM

Nomura has raised its price target for Wiwynn to 6,670 TWD, citing a stronger outlook for general-purpose servers and AMD MI450 server demand. The brokerage expects revenue acceleration in the second half of the year and has increased earnings per share (EPS) estimates for this year and next by 7.6% and 6.9% respectively. Despite potential 9% EPS dilution from a planned 18 million share issuance for working capital, the firm maintains a 'buy' rating. Wiwynn's growth is anticipated to be driven by 2026 demand as AWS transitions to Trainium chips.

Context

Nomura has raised its price target for Wiwynn to NT$6,670, citing a strong outlook for general servers and the AMD MI450 cycle. The brokerage increased its earnings per share (EPS) estimates by 7.6% for this year and 6.9% for next year, anticipating a revenue acceleration starting in the second half of 2025. This optimism is largely fueled by the rise of agentic AI, which is driving unexpected upside for both traditional CPU-based servers and next-generation AI accelerators. While Wiwynn’s recent gross margins dipped to 7.2% due to higher memory costs and a shift toward GPU-heavy configurations, the firm remains a critical partner for Amazon’s transition to Trainium chips through 2026. Despite a proposed issuance of 18 million shares that could lead to 9% dilution, Nomura projects 2026 EPS to reach NT$350.9. This indicates the company is well-positioned to lead the supply chain as cloud service providers scale their proprietary and third-party AI infrastructure.

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