Goldman Sachs maintains a Buy on WUS, with AI high-speed connectivity PCBs driving future growth

Overview

This report focuses on WUS (002463.SZ) and its growth opportunities in the AI infrastructure, high-speed switch, and AI server upgrade cycle. Goldman Sachs believes that with AI server specification upgrades, expanding switching capacity, 224G SerDes high-speed connectivity upgrades, and higher AI server PCB usage, the company’s high-speed connectivity PCB business will continue to pull revenue, margin, and profit growth. The firm maintains a Buy rating and raises the target price from Rmb127 to Rmb142.

Core views

The core view is that WUS is benefiting from expanding PCB demand driven by AI and networking infrastructure upgrades. In 2025, revenue from high-speed switches, routers and related-component PCBs grew 110% year-over-year, while high-speed connectivity and AI server PCB revenue grew 63% year-over-year. Goldman Sachs expects this business to have a 67% compound annual growth rate in 2026-2028E and sees its revenue share rise from about 60% in 2025 to 84% in 2028E. On earnings, Goldman Sachs raised 2026/2027E net profit forecasts by 11%/27%, citing capacity expansion, product mix upgrade, improving gross margin of data-connectivity PCBs, and operating efficiency gains.

Analysis framework

The report combines top-down AI infrastructure demand assessment with bottom-up company updates to revenue, gross margin, expense ratio, and valuation models. On the revenue side, it focuses on PCB demand from AI server, NVLink switching architecture, Rubin Ultra NVL576, 224G SerDes, and AI server midplane specification upgrades; on the profit side, it updates 4Q25 and 1Q26 results and introduces 2028E forecasts; on valuation, it continues using 2027E P/E and references peer-group P/E and the relationship with future earnings growth.

Methodology notes

• Valuation methods2027E P/E target multiple method

  Derive a 12-month target price from 2027E EPS and the target P/E

  Goldman Sachs maintains 2027E P/E as the basis for the target price. The target multiple of 23x is derived from the relationship between peer trading P/E and forward earnings growth expectations. The new target P/E is 23x, down from 26x before, reflecting overall PCB sector multiple compression, price competition, and uncertainty around different scale-up connectivity solution paths.

• Earnings forecastRevenue, gross margin, and expense-ratio revision model

  Revise earnings forecasts through adjustments to revenue growth, product mix upgrades, and operating efficiency

  The report raises 2026/2027E net profit mainly because the AI infrastructure cycle is driving revenue and capacity expansion, data-connectivity PCB gross margins are improving, and economies of scale reduce the expense ratio.

• Research frameworkGS Factor Profile

  Growth, returns, valuation multiple, and composite factor profile

  Goldman Sachs’ factor profile compares stock growth, financial returns, valuation multiples, and composite percentile positioning versus the market and industry peers as investment context.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• WUS (002463.SZ)

  Company covered, rating Buy, target price Rmb142

  Strengths

  Benefitting from AI server, high-speed switch, 224G SerDes, and Rubin-related architecture upgrades; rapid growth in high-speed connectivity PCB revenue; product mix upgrade supporting gross margin expansion; operating efficiency gains lowering expense ratio.

  Weaknesses

  Valuation remains pressured by broader PCB sector de-rating, pricing competition, and scale-up connectivity solution uncertainty; growth depends on the pace of high-end AI server and high-speed switch migration.

  Comparison

  Goldman Sachs’ 2026/2027E net profit forecasts are 14%/44% above Bloomberg consensus, mainly due to more optimistic assumptions on revenue growth and expense-ratio improvement.

  Risks

  High-end AI server and high-speed switch migration slower than expected; AI PCB market competition more intense than expected; capacity expansion slower than expected.

• AI server and high-speed connectivity PCB supply chain

  Growth driver for WUS

  Strengths

  Structural demand support from AI server specification upgrades, higher total switching capacity, more NVLink switch trays, and rising PCB usage.

  Weaknesses

  Different high-speed connectivity and scale-up solutions may affect demand certainty for any single technology path.

  Comparison

  The report emphasizes WUS’s leading market position in high-speed connectivity, which is why Goldman Sachs’ forecast is significantly above Bloomberg consensus.

  Risks

  AI infrastructure buildout pace, customer specification upgrade pace, and industry price competition could all affect revenue and margin realization.

Key data

• RatingBuyThe report maintains a Buy rating.
• Target priceRmb142.00The previous target price was Rmb127; the new target is based on 23x 2027E P/E.
• Current priceRmb108.71Price as of close on May 8, 2026.
• Implied upside30.6%Based on Rmb142 target price and Rmb108.71 current price.
• 2026E net profit revision+11%Mainly from higher revenue, improved gross margins, and lower expense ratio.
• 2027E net profit revision+27%Reflects the AI infrastructure cycle, capacity expansion, and product mix upgrade.
• 2026E revenue forecastRmb28,966.7mnGoldman Sachs new forecast.
• 2027E revenue forecastRmb46,964.1mnGoldman Sachs new forecast, 30% above Bloomberg consensus.
• 2028E revenue forecastRmb63,467.1mnNew 2028E forecast introduced in the report.
• 2027E EPSRmb6.18Goldman Sachs new forecast, previously Rmb4.88.
• 2028E EPSRmb8.75New 2028E forecast introduced in the report.
• Expected CAGR of high-speed connectivity and AI server PCB revenue2026-2028E CAGR 67%Revenue contribution is expected to rise from about 60% in 2025 to 84% in 2028E.

Impact & implications

If Goldman Sachs’ thesis is realized, WUS’s investment logic would shift further from traditional PCB manufacturing toward an AI server and high-speed connectivity upgrade-cycle growth story. The revenue mix shifting toward high-end AI and data-connectivity PCBs is expected to support gross margin expansion, expense-ratio improvement, and earnings acceleration. However, the lower target P/E also shows that the market is still discounting PCB sector valuation, price competition, and uncertainty around different connectivity solution pathways.

Risks

• High-end AI server and high-speed switch migration slower than expected.
• Competition in the AI PCB market becomes more intense than expected, potentially squeezing pricing and margins.
• Capacity expansion runs slower than expected, potentially limiting revenue realization.
• Overall PCB sector multiple compression and connectivity solution uncertainty may cap valuation multiples.

What to watch

• The implementation pace of AI server specification upgrades, including Rubin and Rubin Ultra-related architectures.
• Whether revenue growth of high-speed switches, routers, and related-component PCBs can be sustained.
• Whether the share of high-speed connectivity and AI server PCB revenue rises to 84% by 2028E as expected.
• Whether data-connectivity PCB gross margins can stay above 2024 levels and continue to support overall margin expansion.
• Capex and new-capacity ramp-up pace, especially expansion progress after 4Q25 and 1Q26.
• Whether 2026/2027E revenue and net profit continue to stay above consensus expectations.