## Delta Electronics' Stock Price Hits the Thousand-Yuan Threshold: Short-Term Technical Pressure Is Heavy, but Industry Opportunities Are Poised

Delta Electronics(2308) has recently been oscillating around the 950 yuan level, with short-term price pressure clearly evident. This week, the stock surged by 4.39% due to a strong rebound in the Taiwan stock market, returning above 950 yuan, but then reversed course and weakened, falling 0.32% on the 27th, and today it failed to hold the 950 yuan line, closing at 932 yuan, down 1.06%. This correction has left many investors in a dilemma—should they see this as a long-term buying opportunity or wait on the sidelines?

From a technical perspective, Delta Electronics has been correcting since its all-time high of 1085 yuan. Although it recently regained short-term moving averages such as the 5-day, 10-day, and quarterly lines, the monthly line still exerts heavy resistance. Market analysis indicates that the cumulative gain this year has exceeded multiples, and a recent 20% correction is considered a healthy adjustment. However, current valuations remain relatively high, fully reflecting positive factors, and analysts advise against blindly chasing the stock at this time.

## AI Power Revolution Is Imminent: Delta Electronics Faces Industry Turning Point

Foreign institutional research teams have issued important signals: NVIDIA's Rubin GPU series, expected to launch in the second half of 2026, will bring revolutionary breakthroughs in heat dissipation technology. Its dual-chip version has a thermal design power (TDP) of up to 2300 watts, requiring advanced cooling solutions to operate. This is just the tip of the iceberg.

More notably, the power consumption of AI server racks is expected to surge dramatically—from the current GB series at 130 kW to Vera Rubin at 220 kW, with Rubin Ultra projected to reach 600 kW. What does this 3 to 5 times increase in power consumption mean? The entire global power supply infrastructure must prepare for major upgrades.

The power supply system is accelerating its shift from traditional AC to high-voltage DC architecture and independent power cabinet designs, with this transition expected to peak around 2026 to 2027. The market generally views this as a multi-trillion-dollar upgrade cycle, and Delta Electronics, due to its leadership in power management and heat dissipation technology, along with Lite-On Technology, is identified as one of the biggest beneficiaries of this industry transformation.

Delta Electronics has been proactive in its response—its capital expenditure this year has reached 40 billion yuan, with the same investment scale planned for next year. Even more noteworthy is that the proportion of equipment and automation investments will rise to 65%, setting a new high. The company is expanding capacity in Thailand, Taiwan, and the US, focusing on two core areas: AI server power supplies and liquid cooling heat dissipation products.

## Profit Growth Supports Stock Price Floor; Institutional Investors Project Nearly 40% Increase

Latest estimates from institutional investors show that Delta Electronics' EPS this year could reach 23.8 yuan, and with the increasing shipment of AI-related products next year, it is expected to rise to 33 yuan, representing a 38.7% annual growth rate. This strong profit growth provides solid support for the stock price, implying that as long as industry trends remain unchanged, the downside risk in the long term should be relatively limited.

## Options System Reform and North American Expansion Drive Dual Themes

The Taiwan Futures Exchange will implement adjustments to options contracts on December 8. The multiplier for electronic options will be reduced from 1,000 yuan per point to 250 yuan, significantly lowering the contract value from about 1.6 million yuan to 400,000 yuan. This reform is expected to effectively lower trading barriers and further invigorate trading of derivatives related to the electronic index.

As one of the top five heavyweight stocks in the electronics sector, Delta Electronics, along with TSMC, Hon Hai, MediaTek, and Quanta, accounts for nearly 70% of the total market value of the electronics sector. This weighting structure means that Delta's stock price fluctuations will directly influence the electronic index and amplify through derivatives.

Long-term industry outlook shows that electronics stocks continue to account for over 70% of Taiwan stock market trading volume. With the booming development of AI applications and the semiconductor industry, the electronic index has consistently outperformed the weighted index. Delta Electronics, with its dual themes of AI power supplies and heat dissipation solutions, holds a strategic advantage in this industry trend.

Additionally, Delta's US subsidiary has completed a large building lease agreement in Plano, Texas, with a leasing area of 226,000 square feet and a lease term of 7.5 years, scheduled to start operation in April 2026. This move continues the Texas FWT laboratory project launched last year, demonstrating the group's strong commitment to expanding its North American market presence.

## How Should Investors Respond? Cautious in the Short Term, Optimistic in the Medium Term

Analysts' advice is quite clear: current prices are approaching the thousand-yuan mark, with limited short-term profit potential. Large-scale capital injection is not recommended at this time. However, this does not mean completely avoiding Delta Electronics.

In the short term, investors should patiently wait for a full correction before making strategic positions. The key to medium- and long-term planning is to focus on the upgrade process of AI infrastructure, especially the launch schedule of NVIDIA's new platform in 2026, which will serve as an important industry indicator. Simultaneously, close attention should be paid to the progress of Delta's new capacity in Thailand and the US, as well as the actual contribution of liquid cooling heat dissipation products to revenue.

Furthermore, investors should monitor changes in market liquidity following the December reform of the electronic options system, and keep an eye on whether global AI capital expenditure experiences cyclical adjustments. Key indicators to watch include: changes in open interest of electronic options, shipment progress of AI server power products, trends in gross margin and operating margin, adjustments in foreign institutional holdings, and the utilization rate of new capacity in US factories.