Goldman Sachs: Inventec (2356.TW): Monthly Revenue Preview: AI Servers in Expansion with US Capacity Ramp; 4Q25 OP In Line; Neutral
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Goldman Sachs maintains a Neutral rating on Inventec with a 12-month target price of NT$49, based on 13.4x 2027E P/E. February revenue fell 18% month-on-month to NT$50.9 billion due to fewer working days during the Lunar New Year. However, revenues are expected to recover sequentially from March through June, driven by seasonal improvements and ramping AI server shipments.
The US production capacity for AI servers, including L10 and L11 system integration, is expanding to support further shipment growth. Inventec showcased its Artemis III liquid-cooled rack-level AI server solution at GTC 2026, integrating next-generation Nvidia GPUs and CPUs.
Fourth-quarter revenue reached NT$171.3 billion, slightly above estimates. Operating profit missed expectations by 4%, with operating margins at 1.5%, but net income exceeded forecasts by 48% due to stronger non-operating gains. Gross margin came in at 5.2%.
Looking forward, 2Q26 revenue is projected at NT$192.6 billion, representing 3% year-on-year growth, as rising memory costs may constrain PC end-market demand. Goldman Sachs raised 2026 to 2028 net income forecasts by 1%, 3%, and 4% respectively, reflecting increased AI server revenue projections.