Value Investing: Latest Industry Report – AVA (3324-TW) and AcBel (3017-TW) Enter Mass Production Phase for AI Server Liquid Cooling Amid Rising Power Consumption

High-quality, fundamentally strong stocks continue to rise sharply—even hitting daily limits—despite broader market declines, highlighting the long-term investment potential in the thermal management sector. AVA (3324-TW) and AcBel (3017-TW) have already seen significant price appreciation, yet the market continues to show strong buying interest. The reason is straightforward: AI servers are consuming more power than ever, requiring upgraded cooling specifications, and liquid cooling products are transitioning from niche high-end models to mass-scale deployment.

Recent revenue figures reflect strong order momentum. AVA (3324-TW) reported July revenue of NT$3.765 billion, up 38.54% month-on-month and 116.70% year-on-year, setting a new monthly record. Cumulative revenue for the first seven months reached NT$21.014 billion, up 83.28% year-on-year, also a record high for the period. The company explained that some orders originally scheduled for June shipment were deferred to Q3, while additional orders for the GB series were the primary driver behind July’s revenue surge. Increased rush orders from enterprise clients and major cloud service providers indicate that existing platforms still have real computational demand during the transition between new and old platforms.

AcBel (3017-TW) reported approximately NT$49.1 billion in Q2 revenue and will hold its earnings call on August 12. Institutional analysts expect improved product mix and higher yields in water cooling modules to drive Q2 profits to a new high. Q3 revenue is estimated to grow about 14.5% quarter-on-quarter, with gross margins potentially approaching 33%. These profit and margin figures are institutional estimates and subject to official company disclosures.

NVIDIA’s Vera Rubin platform is pushing server power consumption even higher, requiring more efficient cooling for CPUs, GPUs, memory, and optical transceiver modules in switches. This increases demand for cold plates, and also raises the value of manifolds, quick disconnects (QDs), and coolant distribution units (CDUs). Analysts estimate VR200 liquid cooling components will begin shipping from August to September, with full-rack demand following from September to October. The Rubin Ultra platform is expected to join the lineup by 2027.

AVA’s (3324-TW) growth extends beyond the GB series. Liquid cooling products for ASIC platforms have entered mass production, and DIMM memory cold plates began small-volume shipments in Q2, with significant volume ramp-up expected in Q3. QD quick disconnects, now featuring AVA’s proprietary design starting with GB300, are also being adopted by ASIC customers. The company continues to expand production capacity in Thailand and Guangzhou, broadening its supply scope from cold plates and manifolds to CDUs and QDs. The value of products AVA can supply per server platform is steadily increasing.

AcBel (3017-TW) has improved water cooling module yields to over 90%, with its Vietnam facilities covering modules, manifolds, QDs, chassis, and racks. The company is set to begin supplying Google’s next-generation TPU liquid cooling project in Q3. Analysts project related revenue could reach nearly NT$10 billion by 2026, with further expansion potential in 2027. Projects with AWS, AMD, and optical transceiver module liquid cooling are also progressing, diversifying order sources beyond single GPU platforms to include more in-house developed chips.

Both companies are riding the same wave of AI cooling upgrades, but with different strategic focuses. AcBel (3017-TW) offers a more comprehensive product line, extending from cooling components to chassis and racks, with Vietnam capacity aligned to scale with major customers. AVA (3324-TW), while smaller in revenue scale, shows greater revenue elasticity when GB series add-ons, ASIC liquid cooling, and proprietary QDs all ramp up simultaneously. As major cloud providers continue to increase capital expenditures on data centers, thermal management has evolved from a server accessory to a critical enabler of computing power expansion.

July’s record revenue confirms AVA’s (3324-TW) growth trajectory has shifted from expectation to tangible results, with DIMM cold plates, ASIC liquid cooling, and CDUs set to drive the next phase. AcBel (3017-TW) will be watched for Q2 profitability, VR200 and TPU liquid cooling shipments in Q3, and increasing contributions from overseas capacity. Both companies are positioned on the long-term trend of rising AI server power consumption and increasing liquid cooling penetration, with order content deepening and growth momentum extending into the future. To be the first to know which stocks offer attractive entry points, join Professor Qing-Long’s official LINE: search @ai8085 or click the link below. Free intraday CALL alerts are provided daily to help you track strong-performing stocks.

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Source: Analyst Tsai Ching-Long – Moore Investment Consulting

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