Cheng Uei Stock Soars Amid Strong Earnings and AI Server Growth

Cheng Uei (2425), a Taiwanese graphics card manufacturer, experienced a significant surge in its stock price, trading at NT$40.05 with a 5.26% increase by midday on August 18, 2026. This rise occurred despite a general market decline, driven by strong buying interest. The company's positive performance is attributed to its substantial earnings growth in the first half of the year, with earnings per share (EPS) reaching NT$0.68, a marked improvement from a loss of NT$1.42 in the same period last year.

Further bolstering investor confidence is the continued strong momentum in Cheng Uei's AI server business, a significant area of investment. The company is optimistic about the future, projecting sustained demand for the board card market. This optimism is fueled by the increasing integration of Artificial Intelligence (AI) into corporate production workflows and the growing adoption of AI-powered personal computers by consumers.

Cheng Uei's July revenue reached NT$1.91 billion, marking a 143.6% year-on-year increase. For the first seven months of the year, cumulative revenue stood at NT$10.89 billion, up 120.82% compared to the previous year. Analysts anticipate that the renewed production of NVIDIA's RTX 3060 series graphics cards this quarter will provide a positive boost to related suppliers. The company believes the strong memory demand driven by the AI server industry will lead to a structural repricing, potentially initiating a price increase cycle for PC-related products.