Alchip Technologies: Stronger AWS ramp; second Fabless customer addition and optionality with GOOG; Stay OW

Alchip is guiding for a stronger AWS ramp into 2028 due to upside for Trn3 volumes in 2027 and increased complexity for Trn4 and higher allocation from AWS. In addition, the company is also securing a second customer, which could reach $1bn revenue run rate in 2027-28 (we believe this could be a Fabless customer securing engineering services from Alchip). The company also expects potential opportunity to work with Google, although this looks more distant, in our view. Overall, we expect much stronger revenue growth into 2028, reaching $8-9bn in revenues with further growth beyond. Gross margins were light in Q3 (at 18%), due to weaker NRE revenues and higher turnkey contribution from Trn3, but we expect gross margins to remain at the high-teens to 20% level. As operating leverage picks up, the company is guiding OP margins to reach high-teens % levels, driving very strong EPS growth. We remain OW on the stock with a Jun-27 PT of NT$6,200 (20x 12M forward EPS, a lowered PER given recent