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Investing.com - JPMorgan has upgraded Winbond Electronics Corp (2344:TT) from Neutral to Overweight, while raising its price target to NT$65.00 from NT$38.00.
The upgrade is based on JPMorgan’s expectations for a memory super-cycle, significant AI-driven crowd-out effects on legacy DRAM, and Winbond ’s ongoing DRAM specification upgrades and flash business tailwinds.
JPMorgan initially assumed coverage of Winbond with an Overweight rating in early August, but downgraded the stock in late September when its valuation reached a 10-year historical price-to-book peak of 1.8x.
The firm now believes stock momentum could sustain into the next 1-2 quarters, supported by continued visibility of legacy DRAM contract price increases, which it expects to persist into the second quarter of 2026, while maintaining a cautiously optimistic view for the second through fourth quarters of 2026.
JPMorgan also notes the valuation could further rise to 2.5-3.0x price-to-book ratio, as previous cycles lacked AI catalysts that could prolong supply-demand tightness, and as DDR4 8Gb opportunities emerge for Winbond given product end-of-life at international suppliers.
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