Focus Stock: United Microelectronics Corporation Surges with 5 Consecutive Daily Limits; July Revenue Up 176.5% YoY to Record High

United Microelectronics Corporation (3081-TW), a III-V compound semiconductor-based optical communications stock, has benefited from the continuously rising demand for AI data centers. In July, the company's monthly revenue surpassed NT$500 million for the first time, reaching NT$501 million—a 19.19% increase month-on-month and a 176.54% surge year-on-year—setting a new single-month record high. On the morning of the 6th, the stock quickly hit its daily trading limit at NT$2,375, surging NT$215, marking its fifth consecutive daily limit. Trading volume increased alongside the price, with the stock rising above all moving averages and reaching a new peak in over a month.

The company will hold its earnings conference call on August 12. Market attention will focus on its outlook for the second half of the year and whether it plans to increase capital expenditures for expansion. Recently, foreign media reported that former U.S. President Trump is drafting a proposal to restrict the import of optical transceivers made in China into the United States. This has raised expectations that Taiwanese optical communications firms could benefit from order shifts. Combined with strong revenue performance, United Microelectronics Corporation continues to attract significant institutional investor interest.

Cumulative revenue for the first seven months of the year reached NT$2.627 billion, up 120.9% year-on-year. Revenue has shown year-on-year growth exceeding 100% for four consecutive months. The combined after-tax net profit for May and June reached NT$323 million, surpassing the entire first quarter's profit for this year. Financial institutions estimate that if gross margins and product mix remain strong in July, third-quarter profits still have room for further growth.

Domestic financial institutions noted that United Microelectronics Corporation has recently resumed supply of indium phosphide (InP) substrates. With expectations that Chinese government restrictions may ease, InP substrates are no longer seen as a bottleneck for operational expansion. Revenue from both CW Laser (continuous wave laser) and CW Epi (laser epitaxial wafers) products continues to grow. Analysts maintain a 'buy' rating on the stock.