Value Investing: Latest Industry Research Report – Auras (3324-TW) and Cogobuy (3017-TW) Benefit from AI Server Upgrades and Rising Demand for Liquid Cooling

Last Friday and this Monday, we highlighted this resilient sector—Auras and Cogobuy, the 'thermal duo'—which has shown strong performance despite market headwinds. Their fundamentals are also solid. Let’s take a closer look.

One of the biggest challenges facing AI servers today is heat. As chip computing power increases, so does power consumption and thermal pressure. In the past, fans and air cooling were sufficient, but for next-generation AI racks, air cooling alone is becoming increasingly inadequate. Data centers are accelerating the adoption of liquid cooling, using coolant to directly remove heat. As a result, the thermal management industry is evolving from traditional components to higher-value system-level solutions.

Auras (3324-TW) and Cogobuy (3017-TW) are under close market scrutiny for this very reason. They are no longer just fan manufacturers; they have successfully entered the AI server liquid cooling supply chain.

Let’s start with Cogobuy (3017-TW). The most significant change in Cogobuy’s operations this year is the mass production and improved yield of water-cooling modules. In May, the company posted a monthly net profit of NT$3.152 billion, a 132.28% year-on-year increase, with earnings per share reaching NT$8.03. Second-quarter revenue hit NT$49.12 billion, a record high for any quarter.

More important than revenue, however, is yield. Cogobuy’s water-cooling module yield has already exceeded 90% in Q2, indicating smoother production and lower rework and scrap costs. This means profitability will grow more flexibly than revenue.

In the second half, Cogobuy will focus on ramping up shipments for new AI server platforms. Mass shipments of water-cooling plates and rack piping for NVIDIA’s new platform have begun, and Amazon Web Services’ third-generation in-house AI training chip project will further drive demand. The company has also increased its monthly water-cooling module production capacity from 200,000 units to 1 million units—not a minor expansion, but a strategic move to secure larger long-term orders.

Beyond servers, Cogobuy has also entered the market for ultra-thin vapor chambers used in smartphones and tablets. These components quickly spread heat from mobile chips, preventing localized overheating. While this segment currently contributes a small portion of revenue, volume growth in high-end smartphones, foldables, and tablets could diversify its revenue streams.

Auras (3324-TW) is taking a different path. Auras posted Q2 revenue of NT$8.699 billion, up 1.7% quarter-on-quarter and 63.9% year-on-year, also a quarterly record high. Q2 gross margins were affected by the seasonal slowdown in traditional PC and graphics card demand, so margin expansion wasn’t fully realized. However, the real focus lies ahead: new liquid cooling product shipments in the second half.

Auras’ strength lies in its comprehensive liquid cooling product lineup. The company has developed water-cooling plates, rack piping, and water-cooling control units. Water-cooling plates absorb heat by attaching directly to chips, rack piping distributes coolant, and control units act as the system’s pump and monitoring center, ensuring stable coolant circulation.

For large cloud customers, such integrated solutions are crucial. AI racks aren’t upgraded by replacing a single component—they require coordinated integration of cooling, piping, power, and monitoring. Suppliers that can provide multiple key components streamline customer adoption and deepen partnerships.

In the second half, Auras will scale up alongside NVIDIA’s GB300 and next-generation platforms, as well as U.S. cloud customers’ in-house AI chip projects. Successful shipments of high-value products like memory-specific cooling plates and control units will improve average selling prices and gross margin structure.

As long as AI server power consumption continues to rise, liquid cooling will remain a critical direction for data center upgrades. Auras and Cogobuy are prime beneficiaries of the shift from air cooling to liquid cooling in AI racks. To be the first to know when to buy quality stocks at low levels, join Professor Qinglong’s official LINE by entering @ai8085 or clicking the link below. You’ll receive two free investment alerts (CALLs) daily—during and after market hours—to help you see the present and seize the future.

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Source: Analyst Tsai Ching-Lung – Moore Investment Advisory

The securities analyzed and recommended by our company have no improper financial interests. Past performance does not guarantee future returns. Investors should make independent judgments, conduct careful evaluations, and assume investment risks on their own.