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Investing.com - HSBC upgraded Advanced Wireless Semiconductor Co (TPE:8086) from Hold to Buy and raised its price target to NT$148.00 from NT$112.00.
The upgrade follows a 52% rally in AWSC’s share price since mid-July, compared to a 15% increase in the TAIEX index, reflecting strong second-quarter 2025 earnings and third-quarter guidance revisions.
HSBC believes the market has not fully priced in AWSC’s potential from increasing non-consumer business contributions and market share gains resulting from U.S. IDMs’ exit from certain markets.
The company is diversifying beyond its consumer focus in smartphones and WiFi into Datacom, Auto, Drone, and Solar cell applications, with non-consumer revenue expected to grow from 4% in 2025 to 10% by 2026 and 15% by 2027 under HSBC’s base-case scenario.
HSBC revised its gross profit margin forecasts upward to 26.0% for 2026 and 28.1% for 2027, compared to previous estimates of 22.2% and 23.6%, citing higher margins in non-consumer business segments than in smartphone and WiFi power amplifiers.
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