King Yuan Electronics positioned as a leader in high-power AI/HPC testing, plans significant capacity expansion

Aletheia Capital highlights King Yuan Electronics' leadership in high-power programming and testing for next-generation AI GPUs and ASICs, with capabilities up to 8kW, significantly exceeding competitors. This technological edge has strengthened partnerships with major AI customers like NVIDIA and Broadcom. To meet exploding demand, King Yuan Electronics plans to expand its test capacity by 30-50% by 2026 and double it in subsequent years. The company is focusing on NVIDIA's Rubin and Spectrum-X platforms, Broadcom's Hellcat, and self-developed chips from Amazon (Axion) and Meta (MTIA3). Aletheia Capital projects King Yuan Electronics' AI and HPC testing revenue to grow at nearly 100% CAGR from 2025-2027, with AI business comprising two-thirds of total revenue by 2027. Sales forecasts have been raised to NT$54 billion in 2026 and NT$77 billion in 2027, with EPS adjusted upwards to NT$11.6 and NT$18, respectively. Gross margin is expected to rise from 35.9% this year to 43.4% by 2027. Aletheia Capital maintains a 'buy' rating and raised the target price from NT$300 to NT$400, citing significant upside potential. The tweet also mentions the potential for Advantest testers to be selected for King Yuan Electronics' final testing.