Taiwan Stock Market King Xinhwa Writes a New Chapter! The stock price breaks 7700 yuan, hitting a historic high. What is the logic behind this rally?

Today, the Taiwan stock market witnessed a remarkable scene—King of Stocks, 信驊 (5274), reached a midday high of 7,715 TWD, setting a new all-time high for a single stock in the Taiwan market. This profit king stock opened at 7,335 TWD in the morning and quickly surged amid buying frenzy, closing at 7,550 TWD, up 450 TWD for the day, a 6.34% increase. The trading volume exceeded 570 contracts, making it the most eye-catching highlight in the year-end accounting rally. The two consecutive days of rising trend further indicate that the market is full of expectations for this company’s future.

Why can 信驊 keep reaching new highs? The demand in the AI industry is the key

To stand taller, you need to stand on the shoulders of giants. 信驊’s ability to continuously hit new highs is fundamentally based on its positioning in the hottest segment of the AI industry—leading in the remote server management chips (BMC) domain. As the upgrade cycle of AI servers accelerates toward 2026, the demand and specifications for BMC chips are simultaneously increasing, providing 信驊 with structural growth momentum.

From a fundamental perspective, 信驊’s November revenue performance remains impressive. The company has revised its Q4 outlook upward for the second time, with order visibility extending clearly into the second quarter of 2026. This transparent and stable performance outlook provides substantial support for the stock price increase. More notably, the new generation AST2700 chip is expected to enter mass production next year, offering more advanced process technology and superior performance compared to the previous generation, which is anticipated to further improve the company’s gross margin and market share. Against the backdrop of NVIDIA’s Blackwell architecture mass production and the successive release of new server chassis designs like GB300, the demand for remote management chips per server will significantly increase. 信驊, as an almost monopolistic supplier in the BMC field, holds an advantage that is hard to shake.

In addition to solid fundamentals, the capital side is also fueling the rally. Domestic and foreign institutional investors and foreign funds are actively buying during the year-end accounting period. Their strong consensus on 信驊’s new product mass production and market share growth has directly driven the stock price past the 7,700 TWD mark, with market capitalization approaching 290 billion TWD.

Is there still room for growth? How analysts view it

The market generally remains optimistic about 信驊’s prospects. Several investment institutions have already given a “buy” rating, with the average target price raised above 7,300 TWD. Some foreign funds even believe the stock price has the potential to challenge 8,000 TWD. The core logic behind this view is that the structural growth trend of AI infrastructure spending has not changed, and 信驊’s moat in the BMC domain is sufficient to support its long-term performance in this cycle.

However, investors must also recognize reality—while the stock price has reached a historical high, the P/E ratio is also at a relatively high level, and the market has already priced in many growth expectations. In the short term, the stock price may experience significant fluctuations due to the end of year-end accounting or investors taking profits. The key risks to watch are whether the shipment speed of AI servers in 2026 meets expectations and whether global cloud service providers’ capital expenditures continue to grow. In the medium to long term, as long as the fundamental logic of the AI industry remains unchanged, 信驊’s position as a beneficiary will be difficult to shake.