The power crisis has boosted the valuation of energy backup stocks, with Gabby, Xingnenggao, and Xisheng hitting the daily limit, as institutional funds preemptively position themselves.

Market Focuses on Power Bottlenecks, BBU Concept Stocks Face Structural Opportunities

The broader market experienced fluctuations and adjustments today, but amid the surging energy demand driven by artificial intelligence computing and data center expansion, BBU-related groups reversed trends and gained strength, becoming the market focus. Lithium battery module manufacturer Jiayu (3323) surged strongly and hit the daily limit, closing at NT$44.65. Xingnenggao (6558) and Xisheng (3625) also hit the daily limit with lights on, driving the entire sector higher and highlighting the market’s reassessment of the power backup industry.

From Optional to Essential, BBU Strategic Position Rises

BBU (Battery Backup Unit) is essentially an emergency power supply device with built-in batteries, mainly providing short-term backup power during outages to ensure critical equipment can save data or shut down smoothly, serving as the last line of defense for data center operations. Its importance has sharply increased, driven mainly by two factors:

First, the demand from AI servers and data center expansion creates rigid needs. Currently, global AI computing centers consume high amounts of electricity and require extremely high power supply continuity. Any power outage could lead to computation interruptions and significant losses. As a result, BBU has evolved from traditional communication applications to become a core infrastructure for data centers, becoming an indispensable investment for CSP giants and data center operators.

Second, the global surge in electricity consumption and the structural challenges facing grid stability. BBUs, which combine backup and energy storage regulation functions, are regarded as the “new oil in the AI era,” driving structural growth in demand. Industry experts predict that as NVIDIA’s upcoming AI power summit further focuses on solutions to “power bottlenecks,” BBU will upgrade from an optional component to an essential infrastructure in data center construction.

Orders Realized, Industry Chain Stocks Continue to Profit

System Electric’s strategic cooperation with Jiayu continues to deepen. System Electric has acquired over 10% of Jiayu’s shares. Both companies are targeting the BBU and drone markets, with “BBU manufacturing in the US” as a core development direction. During the earnings call, System Electric disclosed that its BBU product validation is nearing completion, with the first cloud service major customer expected to start shipments in the first quarter of next year. Coupled with the advantages of mass production at the new Texas plant, the outlook is optimistic, and the market expects Jiayu to benefit simultaneously.

Xingnenggao is investing more resources in non-consumer high-margin products. The company is actively expanding into emerging applications such as BBU, energy storage, drones, and medical fields. Its BBU energy storage products used in network communication equipment have passed certification, and next year are expected to inject growth momentum into revenue and profits.

Additionally, companies like Shunda and Xinshengli are planning capacity expansions to meet market demand, with related business revenue expected to significantly increase next year, attracting early capital deployment.

Funds Shift to Lower-Stage Themes, Technical Aspects Favor Short-Term Gains

From the perspective of capital flow, as the market retraces from its high points and investors become more cautious about high-valuation stocks, funds have clearly shifted toward groups with clear industry trends and relatively lower stock price levels. BBU concept stocks are representative; today, stocks priced below NT$50 led the charge upward, driving the entire sector’s price and volume gains, demonstrating strong resilience against declines.

Taking Jiayu as an example, today’s volume-driven long red candlestick broke through the seasonal line resistance, with the daily KD indicator showing a golden cross, indicating a clear short-term technical strengthening, which is favorable for continued bullish attack.

Medium-Long Term Trend Confirmed, Focus on Order Implementation Progress

Analysts point out that under the big trend of AI investment, computing power continues to expand, and “stable and sufficient power supply” has become an indispensable key supporting factor, with a strategic position akin to “new oil.” Therefore, fields such as BBU systems, power management, and high-performance computing infrastructure possess structural long-term growth potential. Related themes are expected to continue fermenting, with a clear medium- to long-term outlook.

Investors should closely monitor each company’s order fulfillment status and revenue contribution progress as important tracking indicators, while also paying attention to other themes benefiting from rising power demand, such as low Earth orbit satellites and new energy.