Yuanta Says AI Cycle Is Not Over, Picks HANA as Top Pick

HoonVision··TH·Read original
3▲3 ▼0Impact / 5
Summary · why it matters

Yuanta Securities stated that the Electronics Cycle has passed its trough and entered a period of accelerating profits. Its research team believes the earnings cycle still has room to run for another 12 months, while AI demand is spreading from GPU and Memory into Networking, Optical, Power, Cooling, PCB and EMS. The third quarter of 2026 is a key proving point where mid-cap stocks' profits could accelerate on recovering utilization and margins. The research team maintained an Overweight on the group and shifted focus from AI leaders to stocks whose earnings are still in the early stages of recovery, selecting HANA as its Top Pick with a BUY rating and a target price of 60.25 baht, followed by SMT at BUY with a target price of 8.40 baht, and CCET at BUY with a target price of 11.30 baht, based on earnings upside and valuation catch-up. Meanwhile, DELTA and KCE are more suited to trading. The research team noted the warning signs to watch are a slowdown in hyperscaler capex, order and utilization growth stalling, and 2027 to 2028 earnings estimates starting to be revised down. If these signals occur together, that would be the point where share prices could end their cycle ahead of earnings.

Impact on assets 5

Semiconductors▲
Robotics & Physical AI▲
Electrification & Mobility▲