Goldman Sachs is optimistic about Mitac capturing demand for AI servers and liquid-cooled racks

Overview

This report is a company research update by Goldman Sachs on Mitac (3706.TW), based primarily on observations from visiting Mitac's booth at Computex in Taipei on June 2, 2026. The report focuses on Mitac's AI infrastructure product portfolio, including liquid-cooled/air-cooled AI server racks, scalable PCIe GPU servers, storage racks, and turnkey solutions covering the AI deployment process.

Core views

Goldman Sachs' core view is that Mitac is well positioned to benefit from expanding demand for AI servers and the multi-chip platform trend. The company's showcased 52U high-density liquid-cooled AI rack can increase computing power per footprint and improve heat dissipation performance; its full-stack AI turnkey and AI factory solutions cover infrastructure management, intelligent AI data platforms, security and OS, and diversified AI server models, helping enterprise customers deploy AI more efficiently. The report maintains a Buy rating.

Analysis framework

The report combines on-site research, management discussions, product showcase interpretation, and relative valuation. On valuation, Goldman Sachs uses 2026E EPS as the basis and applies a 17.1x target P/E to derive a 12-month target price of NT$137; the target P/E is based on analysis of the correlation between peer P/E multiples and EPS growth, with reference to Mitac's 2026E-27E EPS year-over-year growth.

Methodology notes

• Valuation frameworkTarget P/E multiple valuation

  12-month target price

  Goldman Sachs derives Mitac's 12-month target price of NT$137 using a 17.1x 2026E EPS target P/E, with the multiple referencing the correlation between peer P/E multiples and EPS growth.

• Research frameworkGS Factor Profile

  Growth, Financial Returns, Multiple, Integrated

  Goldman Sachs' factor profile compares stocks against its market coverage and industry peers across growth, financial returns, valuation multiples, and integrated indicators.

• M&A frameworkM&A Rank

  Tier 1 to 3 potential M&A probability score

  Goldman Sachs discloses that its M&A Rank framework assesses the probability of a company becoming an acquisition target based on qualitative and quantitative factors; this report does not use it as a core driver of the investment conclusion on Mitac.

• Data toolQuantum

  Goldman Sachs proprietary financial database

  Quantum is used to access historical financial statements, forecasts, and ratios, supporting both deep single-company analysis and cross-industry, cross-market comparisons.

Asset mapping & comparison

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

• Mitac (3706.TW)

  Research subject, Taiwan-listed stock, supplier of AI servers and data center infrastructure

  Strengths

  Has diversified rack-level products, AI server manufacturing experience, and AI turnkey deployment solutions; the multi-chip platform trend helps enhance customer customization and flexibility.

  Weaknesses

  The report does not provide detailed financial weaknesses; the main uncertainties come from the pace of AI server and network equipment shipment ramp-up.

  Comparison

  Goldman Sachs uses the correlation between peer P/E multiples and EPS growth to set a 17.1x target P/E for Mitac.

  Risks

  AI server shipments ramping more slowly than expected, network equipment shipments ramping more slowly than expected, and stronger-than-expected market competition.

• AI servers and liquid-cooled data center infrastructure

  Core demand theme for Mitac's growth

  Strengths

  Liquid-cooled racks can improve space utilization and thermal management in high-density computing deployments, while turnkey solutions can reduce the complexity of AI deployment for enterprise customers.

  Weaknesses

  Demand realization depends on AI application adoption, customer capital expenditure, and supply chain execution.

  Comparison

  Compared with a single-chip platform, a multi-chip platform can improve customer choice and supply chain flexibility.

  Risks

  Intensifying industry competition or slower-than-expected customer adoption could weaken growth.

Key data

• Report date2026-06-02The report header shows Equity Research 2 June 2026.
• Research subjectMitac (3706.TW)A Taiwan-listed stock; both the report title and main text focus on Mitac.
• Analyst ratingBuyThe report explicitly states, "We are Buy rated on Mitac".
• 12-month target priceNT$137The target price is derived from a 17.1x 2026E EPS target P/E.
• Target P/E17.1xThe multiple is based on the correlation between peer P/E multiples and EPS growth, with reference to 2026E-27E EPS year-over-year growth.
• Disclosed priceNT$95.20The company-specific disclosure section of the report lists Mitac's price; the approximately 43.9% upside is a mechanical calculation based on the NT$137 target price and NT$95.20, excluding dividends.
• Key showcased product52U high-density AI liquid-cooled rackThe report states that this product can maximize computing power per footprint, save space, and provide strong thermal management performance.
• Solution coverageFull-stack AI turnkey and AI factory solutionsCovers AI infrastructure management, intelligent AI data platforms, security and OS, and diversified AI server models.

Impact & implications

For investors, Goldman Sachs positions Mitac as a beneficiary of the AI infrastructure buildout cycle, especially in liquid-cooled racks, AI server manufacturing, and enterprise AI deployment solutions. If end demand for AI applications and infrastructure continues, Mitac's product diversification and turnkey capabilities could strengthen order acquisition and growth visibility; however, the investment thesis still depends on shipment ramp-up, network equipment demand, and the competitive landscape.

Risks

• AI server shipment ramp-up is slower than expected.
• Network equipment shipment ramp-up is slower than expected.
• Market competition is more intense than expected.

What to watch

• Whether end demand for AI applications and AI infrastructure can continue.
• Customer adoption, mass production pace, and thermal management performance of the 52U high-density liquid-cooled AI rack.
• Whether AI turnkey and AI factory solutions can improve deployment efficiency for enterprise customers and convert into orders.
• Whether the multi-chip platform trend continues and whether Mitac can reduce customers' dependence on a single chip supplier.
• Whether 2026E-27E EPS year-over-year growth is sufficient to support the 17.1x target P/E.