Goldman Sachs: GCE (2368.TW) Computex & Corporate Day - New ASIC Win Drives Meaningful Upside
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Following the Computex trade show and a corporate day event, Goldman Sachs reiterated its Buy rating on GCE (2368.TW), citing significant upside potential from a newly secured Application-Specific Integrated Circuit (ASIC) project. The firm emphasizes that the total addressable market (TAM) for this new initiative is substantial, providing strong long-term growth momentum for the company.
Management presented an optimistic outlook for 2026 and beyond, driven primarily by robust artificial intelligence and high-performance computing demand. Goldman Sachs notes that the newly won ASIC project specifically targets these AI and HPC applications. While the report did not disclose exact revenue figures, the project is expected to begin contributing meaningfully to the top line starting in 2026. The company holds a distinct technological advantage in the competitive ASIC landscape, positioning it favorably to capture market share.
From a valuation perspective, Goldman Sachs points out that the current share price trades at a discount to historical averages, presenting an attractive entry point for investors. The firm maintains its Buy rating, asserting that the market has not yet fully priced in the strategic value and future revenue streams of the new ASIC project. Principal downside risks include potential project delays, the total addressable market materializing below expectations, and intensifying industry competition.