Krungsri flags electronics stocks as standout play on AI cycle, recommends holding DELTA and KCE long-term

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Analysts say electronics stocks remain the group leading the market higher, driven directly by the artificial intelligence infrastructure investment cycle, or AI capex cycle. Suwat Wattanapornprom, Director of Investment Strategy at Krungsri Securities, noted that leading global chipmaker Nvidia is targeting growth of as much as 70–100%, reflecting enormous trading opportunities. Meanwhile, the GPU shortage is likely to ease as production capacity rises and new manufacturers enter, bringing supply into better balance. On the earnings outlook, electronics stocks are expected to post continued improvement in the third quarter of 2026, and should sustain their growth momentum in the fourth quarter of 2026, supported by a steady stream of forward orders under the capex cycle extending through 2026 and 2027. The top picks are Delta Electronics (Thailand), or DELTA, with a fundamental target price of 320 baht, and KCE Electronics, or KCE, with a fundamental target price of 97 baht. Analysts at Phillip Securities (Thailand) expect DELTA's third-quarter 2026 net profit at 8.319 billion baht, up both year-on-year and quarter-on-quarter, and have rolled their target price forward to 2027 at 330 baht. Analysts at KGI Securities (Thailand) expect KCE's third-quarter 2026 core profit to rise to 514 million baht, up 78% from the same period a year earlier and 113% from the previous quarter, with core profit for the first nine months of 2026 likely to rise to 937 million baht, up 45% year-on-year, and estimate a end-2027 target price of 62 baht.

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Electrification & Mobility▲
Semiconductors▲
Artificial Intelligence▲
NVIDIA Corporation
NVDA
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Article cites Nvidia targeting 70-100% growth as the driver of the AI capex cycle lifting electronics stocks.