Wiwynn Corp 3Q earnings beat on GMs; 2027 outlook remains strong with further AI ramps; OW

Key takeaways from Wiwynn 3Q26 earnings were: 3Q earnings beat mainly on GM upside of 8.9% versus JPMe 7.7%, driven by a favorable mix with general servers above 50% of revenue, continued NRE fees and better-than-feared AWS T3 margins; a solid 4Q26 general server demand outlook, though supply constraints remain the key overhang; management expects QoQ growth in ASIC server shipments in 4Q26 despite recent market concerns; and BoD approval for the previously disclosed GDR issuance of 18mn shares, roughly 3% dilution on our estimates, to support working capital needs. Wiwynn stock has underperformed TWSE by 14% over the past three months. Trading at 9x 12-month forward P/E, we believe most negatives are priced in and expect the stock to regain momentum from 1Q27 on the next AI GPU server cycle and easing concerns around AWS ASIC servers. We raise 2027E/28E earnings by 15%/14% and maintain our Jun-27 PT of NT$2,520 based on 13x 12-month forward EPS. Key downside risks include ongoing supp