FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Tuesday, JPMorgan analyst Jerry Tsai increased the price target for Elite Material Co Ltd (2383:TT) to NT$1,000 from NT$900, while reaffirming an Overweight rating on the company’s shares. This adjustment reflects the analyst’s expectation of a significant market expansion for graphics processing units (GPUs) and application-specific integrated circuits (ASICs) by 2026.
Tsai anticipates a 35% growth in the total addressable market (TAM) for these components, projecting it to reach $2.5 billion. This growth is expected despite the high base already established. The analyst suggests that Elite Material’s market share could rise from the high 50s to the high 60s percentage range, due to the company’s ongoing expansions that will enable it to capitalize on more opportunities.
In 2025, Elite Material had to be selective in pursuing GPU projects due to capacity constraints. However, Tsai believes that the company will regain the leadership position in the GPU market with the upcoming Rubin generation. For ASICs, which have been the most significant driver of revenue growth for Elite Material, contributing an incremental TWD15 billion in 2025, the analyst expects continued strong growth in 2026. This is despite potential declines in its Tranium project, mainly due to design changes.
The anticipated growth in Elite Material’s revenue will be driven by two other rising projects. According to Tsai, one of these projects could be comparable to Tranium, and Elite Material is expected to achieve dominating market shares of over 80% in these areas.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.