Goldman Sachs: Taiwan Tech January Revenue Review: AI Server Components and LEO Satellites Outperform
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Goldman Sachs reviewed January revenue across 101 Taiwanese technology companies, identifying AI server components and low-earth orbit (LEO) satellites as the strongest performing segments. Rail kits led monthly gains at 14%, followed by LEO satellites at 13%. Overall, 60% of companies beat revenue expectations, 25% met them, and 15% missed.
The robust performance in AI server components was driven by specification upgrades and front-loaded shipments. Liquid cooling providers also saw strong momentum due to rising penetration rates and ASIC AI server demand. In the semiconductor space, Realtek surged 63% month-over-month, fueled by customer restocking and inventory building ahead of memory shortages. Additionally, copper-clad laminate (CCL) players benefited from price hikes of 10-15% quarter-over-quarter for mid-to-low-end products.
Conversely, PC and smartphone sectors entered a low season, marked by rising memory costs and weakening demand. ODM brands declined 11% month-over-month, and handset assembler Pegatron dropped 8%.
Goldman Sachs maintained Buy ratings across several key areas, notably LEO satellites, Apple supply chain names, AI components, ODMs, PCB/CCL, and semiconductors. Top year-over-year performers included Wistron, AVC, and Chenbro, underscoring the ongoing momentum in AI infrastructure and satellite network expansion. Looking forward, ABF substrate prices are expected to rise approximately 10% quarterly throughout 2026 due to tight supply, while foldable smartphone shipments are projected to grow 41% year-over-year in 1Q26.