Goldman Sachs cuts Quanta Computer stock rating to neutral

Published 24/03/2025, 11:12
Goldman Sachs cuts Quanta Computer stock rating to neutral

On Monday, Goldman Sachs revised its outlook on Quanta Computer Inc. (2382:TT) (OTC: QUCPF), downgrading the stock from Buy to Neutral. The firm also lowered the price target to NT$293.00 from NT$371.00 due to a downward revision in rack-level AI server volume forecasts and uncertainties in demand and supply.

The downgrade comes as Goldman Sachs analysts, including Allen Chang, anticipate a decrease in the expected volume of rack-level AI servers for the years 2025 and 2026. The new forecast predicts 19,000 units in 2025 and 57,000 units in 2026, a significant drop from the previously estimated 31,000 and 66,000 units, respectively.

In response to the revised server volume forecast, Goldman Sachs has also adjusted its coverage of the Taiwan ODM/cooling supply chain, which includes companies like Hon Hai (TW:2317), FII, Wistron, AVC, and Auras. These adjustments have led to a reduction in price targets ranging from 7% to 21%.

Despite the downgrade, Goldman Sachs expects the second quarter of 2025 to be strong for the Taiwan ODM/cooling supply chains, bolstered by the production ramp-up of rack-level AI servers. However, the firm maintains a conservative stance on the full-year volume, cautioning that the product transition period in the third quarter of 2025 may negatively affect volume once again.

The revised price target of NT$293.00 reflects a more modest upside potential for Quanta Computer’s stock compared to its industry peers. Goldman Sachs’ decision underscores the impact of product transitions and market uncertainties on the company’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.