Goldman Sachs: Wiwynn (6669.TW) GPU AI Server Ramp-Up Drives Growth; 4Q25 In Line; Buy
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Goldman Sachs reiterates a Buy rating on Wiwynn (6669.TW) with a 12-month target price of NT$6,400, based on 22.0x 2026E P/E. The stock currently trades at NT$4,240, offering 50.9% potential upside. Fourth-quarter 2025 revenue reached NT$292 billion, surging 10% sequentially and 153% annually, beating both Goldman Sachs and Bloomberg consensus estimates driven by a massive ramp-up in GPU AI server shipments.
Gross margin contracted to 7.2% (down from 8.8% in Q3 and 9.4% in Q4 2024) due to product mix dilution from GPU servers and lower NRE fee contributions. Operating margin stood at 5.6%, while net profit reached NT$13.8 billion, benefiting from non-operating gains.
Goldman Sachs successfully expanded from ASIC to GPU AI servers, capitalizing on robust capital expenditure from global cloud service providers. While GPU projects inherently dilute gross margins, management expects scale expansion and production automation to contain the impact, projecting a 7-8% gross margin for 2026. ASIC penetration in AI chips is projected to rise from 38% in 2025 to 40% in 2026. Following January-February seasonal softness, monthly revenue is expected to rebound sharply in March.