Demand for AI data centers continues to heat up, making power supply units and backup battery modules (BBUs) key market focus areas. However, Delta Electronics’ stock has dropped from a high of over 2,500 TWD to a low of around 1,400 TWD—a decline exceeding 40%. In response, senior analyst Du Jin-Long, appearing on the program 'Stock Market Money Rolling,' addressed investors who bought at prices above 2,000 TWD: 'If you have funds, consider averaging down with another purchase. Generally speaking, just one more buy-in can significantly lower your average cost.'

How is Delta Electronics performing financially?

Delta Electronics reported consolidated revenue of NT$67.073 billion in July, up 2.2% month-on-month and 47.75% year-on-year—setting a new single-month record. Cumulative revenue for the first seven months reached NT$409.682 billion, a 42.08% increase from the same period last year. Growth is primarily driven by AI server power supplies, liquid cooling solutions, and data center infrastructure.

Du Jin-Long noted that although Delta’s 30% correction was relatively large, it has already bottomed out, as evidenced by a limit-up session on Monday. 'After such stocks complete their consolidation phase, we’re now seeing Lite-On rally as well, and Delta is beginning to rebound too. Therefore, this pullback presents a buying opportunity for investors.' After reviewing research reports, he added, 'The economic outlook has merely been delayed—the EPS is only adjusted down by 1–2 TWD, but still remains above 100 TWD.'

Is Delta Electronics’ P/E ratio too high?

Du Jin-Long pointed out that while the current stock price of over 2,000 TWD may seem high in terms of P/E ratio, 'the stocks related to the power revolution will rise again in the future, so there’s no need to fear. Pullbacks should be seen as buying opportunities.' He emphasized that he hasn’t sold any of his holdings and continues to hold. 'For those who bought above 2,000 TWD—averaging down with another purchase is advisable. One additional buy-in usually brings the average cost down sufficiently.'

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  • Source: PR Times
  • Category: News