HTC Corp. (2498.TW): XR headset and AI glasses to support growth ahead; Near-term cost pressures remain; Sell

Goldman Sachs maintains a Sell rating on HTC Corp. (2498.TW) with a 12-month target price of NT$32.8. In September HTC accelerated its global wearable expansion, commercially launching the round-frame edition of its VIVE Eagle AI smart glasses along with software enhancements across North America, Europe and Australia, adding features such as hands-free image capture, first-person POV live streaming, real-time AI translation, AI Notes, dashcam utility and assistive vision. Its VR headset strategy remains anchored on commercial enterprise solutions. While constructive on HTC's long-term growth trajectory, GS stays Sell-rated given near-term earnings headwinds: core monetization across XR/VR/AI glasses and software needs extended lead time to ramp, compounded by consumer electronics demand softness and margin compression from elevated memory component costs. It revises down 2026-28E revenues by 4%/0%/27% on consumer electronics demand pressures and soft near-term XR demand;