Delta Electronics, Inc. (2308.TW): Supply-driven 3Q26 revenue miss, bigger 4Q uptick ahead; OW

J.P. Morgan's 13 October 2026 report notes that Delta Electronics (2308.TW) reported September revenue of NT$65.4bn (+1% MoM, +15% YoY) after the October 12 Taiwan market close, taking 3Q26 revenue to NT$197bn (+8% QoQ, +31% YoY), 8%/5% below J.P. Morgan's and BBGe's estimates. The miss was primarily driven by weaker-than-expected Power Electronics sales, attributed to ongoing power semiconductor supply constraints and PSU capacitor issues. The 3Q26 revenue mix was Power Electronics 54%, Mobility 5%, Automation 8% and Infrastructure 34%, with Power Electronics up only 11% QoQ versus the 26% forecast. The firm expects server power momentum to re-accelerate over the next few months, driven by the 18.5kW PSU ramp and initial HVDC power rack shipments in 4Q26, with price pass-through becoming more visible; server power revenue should grow QoQ in 1Q27 on order backlog and improving supply. The stock has outperformed TAIEX by ~25% YTD;