Taiwan Surface Mount Tech (6278 TT): AI mix to rise from current <5% to >30% by 2027

J.P. Morgan Asia Pacific Equity Research note on Taiwan Surface Mount Tech (6278 TT, OW). AI mix to rise from current <5% to >30% by 2027. 3Q revenue rose 9% QoQ, slightly above JPMe on strong DRAM and Apple-related revenue, helped by smoother component procurement; revenue from US EV/datacenter customers also grew ~30% QoQ on datacenter camera module SMT business. Looking into 4Qe, revenue is expected to grow another 8-10% QoQ (vs. 0-3% consensus), driven by a strong ramp in optical revenue, with mix rising from 1% in 3Q to 5%+ in 4Q. GM is expected to increase in both 3Q and 4Q, lifting GM exiting the year above 15% (vs. 12% in 1H). Price target raised to NT$370.00 from NT$196.00; EPS estimates up 11.2% for current FY and 27.8% for next FY.