Lite-On's Dual Engine of Power Supply and Optical Communications Drives Stock to All-Time High with Morning Session Hitting Limit Up

Lite-On Technology (2301-TW), a power supply manufacturer, is benefiting from market recognition of its AI data center power management and optical communications strategy, leading to a strong recent stock rally. On the morning of today (10th), the stock hit the daily limit-up price of NT$271.5, reaching a new all-time high, with over 12,000 buy orders outstanding.

Lite-On's AI-related product revenue accounted for over 25% in Q2, exceeding initial expectations, with a full-year target of over 30%. Backup battery systems now contribute nearly 20% of cloud division revenue, with annual growth expected to match the cloud business at over 70%. Overall performance in the second half of the year is expected to significantly outperform the first half.

To meet the explosive demand for AI infrastructure over the next five years, Lite-On has raised its 2024 capital expenditure to NT$18 billion. The Kaohsiung Phase II plant and Vietnam new factory are scheduled to commence operations in Q3 and Q4 respectively, while the Texas, USA plant will begin mass production of high-voltage DC power and backup battery systems in the first half of next year. As global capacity comes online, non-China production share is expected to increase to 70% by 2027, significantly enhancing long-term order-taking capability.

In next-generation technology and long-term business expansion, Lite-On has strategically invested in Singapore-based optical communications component maker DenseLight, acquiring approximately 21% equity to strengthen its position in indium phosphide laser sources and co-packaged optics (CPO). Related high-power products are expected to start generating significant revenue contributions from the second half of 2027, establishing a second long-term growth curve beyond power management.

Additionally, Lite-On's next-generation 800V high-voltage DC power cabinet is scheduled for the second phase of validation with IT systems in Q4. Upon approval, limited shipments could begin as early as November, with mass production expected in Q1 next year, as major North American cloud service providers continue to expand adoption.