CoWoS is in short supply and GB200 will be mass-produced. Uni-President Investment: The year-end trend of Taiwan stocks can still be expected
United News Network
October 24, 2024
Author Economic Daily reporter Liao Xianlong
October 24, 2024
Author Economic Daily reporter Liao Xianlong
Recently, the third-quarter financial reports and fourth-quarter outlook of major semiconductor foundries were better than expected, driving the Taiwan stock market to reach short-term swing highs. Chen Chuanyao, manager of Uni-President Pentium Fund, said that Taiwan and the United States have entered the earnings release season, and as the U.S. presidential election day gradually approaches, Taiwan stocks are expected to be range-bound in the short term, and may experience larger fluctuations. However, the operating outlook of many heavyweight companies in Taiwan is optimistic, and the fundamentals of the Taiwan stock market are solid. After the political uncertainty surrounding the U.S. election is eliminated, Taiwan stocks are still expected to perform well at the end of the year, driven by the development of AI. We are optimistic about the AI supply chain, color e-books, graphics cards, fiber optics and Netcom switch groups, as they will have more performance opportunities in the future.
Chen Chuanyao said that according to the recent financial reports of Taiwanese companies, AI development is still in its early stages, which keeps orders for AI chips hot. Although CoWoS production capacity continues to expand, demand still far exceeds supply, which is beneficial to the revenue growth of related stocks. The new AI server GB200 is expected to begin mass production in the fourth quarter of this year, and will begin to ramp up in March and April next year. It is expected to boost supply chain operations. Downstream assembly plants, including heat dissipation and other component groups, can also operate in the first quarter of next year. I hope the off-season stays strong.
In addition, global cloud service giants have invested heavily in the AI field, which has also brought business opportunities to related supply chains. Chen Chuanyao said that with the rapid expansion of AI large-scale data centers and the increase in switches required for high-speed transmission from 400G to 800G, the revenue of fiber optic and Netcom switch stocks is expected to continue to grow next year. The stock price of the graphics card group has been at the bottom for some time, and it has the advantage of a low base period. In addition, Huida and Advanced Micro Devices are expected to release new graphics cards in the first quarter of next year, and the stock prices of related stocks have the opportunity to rise in the future. Amazon’s color e-book products have been launched ahead of schedule and are expected to begin shipping in the near future. The momentum of new products’ sales is also expected to benefit related supply chains.
Uni-President Investment Trust said that AI is gradually developing into terminals, and related applications have entered a stage of blooming, allowing AI business opportunities to spread to all groups in technology stocks. The proportion of technology stocks in Taiwan stocks has increased. It is recommended that investors can use high-quality Taiwan stock technology funds to intervene, which can not only grasp AI business opportunities, but also flexibly respond to changes in industrial boom cycles and stock rotations in slow and peak sales seasons. Uni-President Pentium Fund has excellent long-term performance, with a two-year return rate of 101.63%, a five-year and ten-year return rate of 291.14% and 507.97%, locking in the high growth potential of technology stocks and pursuing long-term excess returns for investors.
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