Better wafer allocation and demand upside driving H226-2027E earnings growth

UBS reiterates its Buy rating on Global Unichip (3443.TW) and raises the price target to NT$8,660 from NT$6,700, based on 52x average 2027-28E EPS, supported by a 56% earnings CAGR over 2025-30E. We expect CPU projects to remain GUC's main revenue driver in 2026-27E and see improved wafer allocation into 2027E, with Google CPU volumes ramping from 1.3mn units in 2026E to ~4mn units in 2027E, supported by rising TPU shipments (up 117% YoY in 2027E), a rising CPU-to-TPU ratio, and better wafer allocation from TSMC. Although GUC's CPU projects carry lower GM, we believe they remain earnings accretive given the operating leverage from limited incremental OPEX requirements. We now expect 2026E revenue growth of 94% YoY to NT$66.3 bn and 2027E revenue to grow 146% YoY (with Google CPU contributing 67% of 2027E sales). We also expect OPM to expand from 13.2% in 2026E to 13.9% in 2028E. Accordingly, we raise our 2027/28E EPS estimates by 29%/22%;