Asustek Computer Inc (
Shares of the nation's largest maker of motherboards gained NT$3.20, or 3.6 percent, to close at NT$92.20 on the Taiwan Stock Exchange, outperforming a 0.11-percent increase in the benchmark TAIEX.
In a filing with the local exchange late on Monday, Asustek said profit in the first six months rose 91 percent from a year earlier to NT$13.58 billion (US$411 million).
Second-quarter profit rose to NT$6.85 billion as the company sold more notebook computers under its own Asus brand.
The company also makes computers for Apple Inc and Sony Corp as well as Sony's PlayStation 3 games console.
The research team at Citigroup Global Markets said in a note dated on Monday that it would maintain a "buy" rating on the Asustek stock as the company is still one of its top picks in the Asia personal computer and motherboard sector.
Citigroup gave a target price of NT$125 for Asustek, given the company's strong improvement margin and record profits from brand business.
Asustek will provide full second-quarter financial details including non-operating profit and outlook at a briefing on Sept. 4 in Taipei.
"While we wait for the analyst meeting on Sept. 4 for more details, we believe Asustek's stock price would react positively to the strong 2007 results," Citigroup analyst Kirk Yang (
UBS AG also maintained a "buy" rating on the stock and raised its 12-month price target to NT$118 from NT$105.
"Asustek could maintain above industry growth given its differentiated product offering, favorable emerging markets exposure and limited US presence," UBS analyst Arthur Hsieh (
"Companies with solid scorecards are favored by investors," Hsieh said. "Ultimately they will make decisions based on corporate profitability."
Taipei-based Asustek won an order from Dell Inc, the world's second-largest computer supplier, to make laptops for delivery beginning in the second half of next year, Hsieh wrote.
Citigroup expects Asustek to ship 61 million motherboards, 7 million to 7.5 million notebook computers and 200,000 to 500,000 units of the super low-cost computer, Eee PC, this year.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
CHANGING JAPAN: Nvidia-powered AI services over cellular networks ‘will result in an artificial intelligence grid that runs across Japan,’ Nvidia’s Jensen Huang said Softbank Group Corp would be the first to build a supercomputer with chips using Nvidia Corp’s new Blackwell design, a demonstration of the Japanese company’s ambitions to catch up on artificial intelligence (AI). The group’s telecom unit, Softbank Corp, plans to build Japan’s most powerful AI supercomputer to support local services, it said. That computer would be based on Nvidia’s DGX B200 product, which combines computer processors with so-called AI accelerator chips. A follow-up effort will feature Grace Blackwell, a more advanced version, the company said. The announcement indicates that Softbank Group, which until early 2019 owned 4.9 percent of Nvidia, has secured a
TECH SECURITY: The deal assures that ‘some of the most sought-after technology on the planet’ returns to the US, US Secretary of Commerce Gina Raimondo said The administration of US President Joe Biden finalized its CHIPS Act incentive awards for Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), marking a major milestone for a program meant to bring semiconductor production back to US soil. TSMC would get US$6.6 billion in grants as part of the contract, the US Department of Commerce said in a statement yesterday. Though the amount was disclosed earlier this year as part of a preliminary agreement, the deal is now legally binding — making it the first major CHIPS Act award to reach this stage. The chipmaker, which is also taking up to US$5 billion
RSS