Wiwynn (6669.TW): New ASIC and GPU AI server racks in expansion; Aug strong beat; TP up to NT$3,777; Buy

Wiwynn delivered strong Aug revenues, which were 27% ahead of our estimates, reflecting strong general servers demand from US leading CSPs, and its major customers' new ASIC AI servers ramping up. We expect sequential revenues growth to continue through Dec 2026, leading 3Q26 / 4Q26 revenues to grow at +46% / +22% QoQ, driven by (1) major customers' new ASIC AI servers ramping up, across air-cooled and liquid-cooled, (2) general servers end demand remaining solid on agentic AI, (3) new GPU-powered AI server racks entering mass production in 4Q26 across NVIDIA and AMD platforms, and (4) potential new customers in ASIC AI servers. Maintain Buy with TP raised to NT$3,777 (21.5x 2027E P/E vs. +32% EPS YoY in 2027-28E). On capacity expansion, Wiwynn announced a 2H26 capex budget of US$942m, and we estimate the company's capex at NT$44bn in 2026E, staying at a similar high level through 2028E. We raise 2026-28E revenues by 8% / 7% / 5% and change our net income by +7% / +5% / +3% in 2026-28E