BofA: Taiwan Technology - HK Marketing Feedback, Balancing Growth Visibility and Supply Tightness
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Bank of America's recent Hong Kong marketing roadshow, held May 18-21, 2026, convened roughly 30 investors to discuss Taiwan's technology sector. Key feedback centered on balancing robust growth visibility against ongoing supply chain tightness. Investors showed intense interest in beneficiaries of the AMD server supply chain and strengthening server CPU demand, highlighting companies like Aspeed, MPI, Unimicron, Kinsus, and NYPCB for their high exposure to this trend.
Valuation concerns surround test interface firms like MPI and WinWay, which have experienced significant re-ratings. However, analysts argue that exceptional earnings visibility over the coming quarters can support current valuations even if multiple expansion stalls. Within hardware sub-sectors, ABF substrates and high-end Copper Clad Laminates (CCL) remain highly favored due to persistent supply shortages. Conversely, Printed Circuit Boards (PCBs) face headwinds from intensifying competition and the adoption of Co-Packaged Optics (CPO).
Supply constraints are particularly acute in test interfaces and power semiconductors, where extended lead times are creating incremental tightness. Regarding the PC fabless supply chain, investors expressed interest in both ASMedia and Parade. Analysts maintain a stronger preference for ASMedia, noting that Parade is unlikely to penetrate AMD's application-specific business until the second half of 2027 at the earliest. Overall, the roadshow highlighted that earnings visibility remains a critical catalyst for sustaining valuations across Taiwan's tech complex.