Trainium 3 and AMD MI450 Drive 2027 Growth; Target Price Raised to TWD 9,480

Overview

WIWYNN CORP is a cloud IT infrastructure provider offering computing, storage products, and rack-level solutions for large-scale data centers. Nomura believes the company's next phase of growth will be jointly driven by AWS Trainium 3, AMD MI450 customized for Meta, NVIDIA VR200, and demand for CPU servers driven by AI inference. Although rising R&D expenses and capital expenditures weigh on near-term profit expectations, platform portfolio expansion from 2027 onward is expected to significantly increase revenue and earnings scale.

Core views

The report's core view is that WIWYNN CORP will shift in 2027 from a structure highly dependent on CPU servers and AWS ASICs to a more balanced mix of CPU, ASIC, and GPU platforms. The smooth ramp-up of Trainium 3 and higher liquid-cooling configurations will support AWS business growth; demand feedback for AMD MI450 is better than expected and may become the largest source of incremental growth in 2027; NVIDIA VR200 and CPU servers provide additional growth. Google is evaluating Taiwan ODMs to meet doubled TPU board and rack demand in 2027, and WIWYNN CORP may participate in the L6 stage, but Nomura has not yet included it in the earnings model because the project has not been finalized.

Analysis framework

The report uses bottom-up assumptions for platforms, customers, and rack shipments to separately estimate the AWS Trainium 3, AMD MI450, NVIDIA VR200, and CPU server businesses, and then adjusts 2026–2028 revenue, profit, and EPS forecasts accordingly. For valuation, the target price of TWD 9,480 is derived by applying a 17.5x target P/E multiple to the 2027 forecast EPS of TWD 541.8, with reference to the company's historical 8–20x P/E range and the Taiwan TAIEX index.

Methodology notes

• Valuation methodForward P/E relative valuation method

  Estimate a stock's fair value based on forward EPS and a target P/E multiple.

  The target price is calculated using 17.5x 2027 forecast EPS of TWD 541.8. This multiple is near the high end of the company's historical 8–20x P/E range, reflecting growth expectations for the AI server business.

• Earnings forecastBottom-up operating driver model

  Build revenue and earnings forecasts by customer, server platform, rack quantity, market share, and product mix.

  The model separately considers AWS Trainium rack share, AMD MI450 rack shipments, NVIDIA VR200 shipments, and CPU server growth, while incorporating R&D expenses, capital expenditures, and liquid-cooling product mix to adjust earnings forecasts.

• Scenario analysisSeparation of confirmed projects and potential projects

  Include only higher-visibility projects in the base forecast, while treating opportunities not yet finalized as potential upside factors.

  Google may expand cooperation with Taiwan ODMs and request quotations from WIWYNN CORP for the L6 stage, but because the project has not yet been finalized, the report does not include it in the earnings forecast.

Asset mapping & comparison

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

• WIWYNN CORP（6669.TW）

  The core research target of this report, directly benefiting from growth in demand for AI servers, ASIC racks, and GPU racks.

  Strengths

  Has the capability to serve large cloud customers, experience in rack-level system integration, and a high share in AWS Trainium racks.

  Weaknesses

  High concentration in customers and projects, with significantly rising R&D, capital expenditure, and working capital needs.

  Comparison

  The 2027 business mix is expected to become significantly more balanced than in 2026, with the GPU platform share rising from 3%–5% to 36%–40%.

  Risks

  New server platform penetration falling short of expectations, weak server demand, project delays, and integrated circuit shortages.

• ADVANCED MICRO DEVICES INC（US.AMD）

  AMD MI450 is one of WIWYNN CORP's most important new revenue drivers in 2027, mainly targeting customized demand from Meta.

  Strengths

  Demand feedback for the MI4XX market is better than expected, and the report significantly raises the related 2027 rack assumptions.

  Weaknesses

  The project is expected to begin ramping only at the end of 2026 or early 2027, limiting near-term contribution.

  Comparison

  AMD-related sales are almost zero in 2026, but are expected to account for about 30% of WIWYNN CORP's sales in 2027.

  Risks

  Product timeline, Meta procurement scale, yield, and supply chain execution falling short of expectations.

• NVIDIA CORP（US.NVDA）

  The NVIDIA VR200 platform provides WIWYNN CORP with additional GPU server growth, with potential demand mainly from Oracle.

  Strengths

  Can promote customer and GPU platform diversification and reduce reliance on a single ASIC project.

  Weaknesses

  The report expects only about 1,000–2,000 rack shipments in 2027, a scale below the AMD MI450 assumption.

  Comparison

  Compared with AMD MI450, NVIDIA VR200 has fewer expected racks, but together they drive a rapid increase in the GPU platform share.

  Risks

  Changes in Oracle demand, delays in platform rollout, and competing ODMs winning orders.

• META PLATFORMS INC（US.META）

  Meta is the main end-demand customer for the customized AMD MI450 project and has an important impact on WIWYNN CORP's 2027 growth.

  Strengths

  Large-scale AI infrastructure investment can support GPU rack demand.

  Weaknesses

  A single large customer project may bring demand volatility and pricing pressure.

  Comparison

  The Meta-related AMD project is expected to be the core of new sales in 2027, while Oracle is more associated with the NVIDIA platform.

  Risks

  Capital expenditure adjustments, changes in platform selection, or delays in deployment pace.

• ORACLE CORP（US.ORCL）

  Oracle is viewed as the main potential customer for WIWYNN CORP's NVIDIA VR200 racks.

  Strengths

  Expansion of cloud AI infrastructure can increase demand for GPU servers.

  Weaknesses

  The VR200 shipment scale in the report is relatively limited, and customer attribution is somewhat speculative.

  Comparison

  The scale of Oracle-related NVIDIA business is expected to be smaller than the Meta-related AMD MI450 business.

  Risks

  Changes in order timing, cloud capital expenditures, and supplier allocation.

Key data

• RatingBuyRating unchanged, expected to outperform the Taiwan TAIEX index over the next 12 months.
• Target priceTWD 9,480Raised from TWD 8,500, based on 17.5x 2027 forecast P/E.
• Current priceTWD 6,100As of August 7, 2026.
• Potential upside+55.4%Calculated based on the target price relative to the current price.
• Earnings forecast revision2026 -3.1%; 2027 +11.5%; 2028 +15.1%The 2026 downgrade mainly reflects updated operating expense assumptions, while the upgrades for the following two years come from stronger demand for Trainium 3, AMD MI450, and CPU servers.
• 2027 forecast EPSTWD 541.8The previous forecast was TWD 485.7, which is the main basis for the target price increase.
• AWS Trainium rack market share assumption70%–80%This share is expected to be maintained in 2026–2027.
• AWS sales growth forecast2026 +67%; 2027 +42%Reflects the smooth ramp-up of Trainium 3 and improved liquid-cooling product mix.
• AMD MI450 shipment assumptionAbout 6,000 racks in 2027The previous assumption was about 2,000–2,500 racks; it is expected to contribute about 30% of sales in 2027.
• NVIDIA VR200 shipment assumptionAbout 1,000–2,000 racks in 2027The main potential end customer is Oracle.
• CPU server growthUnit growth of 39% in 2026; compound growth of 17%–20% thereafterThe previous 2026 unit growth assumption was 32%, and the long-term compound growth assumption was 15%.
• Expected 2027 sales mixCPU servers 28%–32%; AWS ASIC 30%–33%; GPU platforms 36%–40%Compared with expected 2026 shares of 48%–51%, 45%–47%, and 3%–5%, respectively, the business mix becomes significantly more balanced.
• 2026 capital expenditureAbout TWD 38bnManagement approved a USD 942mn capital expenditure budget for the second half of 2026.
• Current 2027 forecast P/EAbout 11xBelow the 17.5x target P/E used in the report.

Impact & implications

If Trainium 3, AMD MI450, and CPU servers ramp as expected, WIWYNN CORP will benefit in 2027 from rapid revenue growth, improved customer and platform structure, and valuation re-rating. The AMD business rising from almost no contribution in 2026 to about 30% of sales in 2027 is the key variable behind the upward earnings forecast revision. On the other hand, increased R&D and capacity investment in advance, combined with 2027 working capital needs and capital expenditures, may create pressure on cash flow and leverage, so the pace of growth realization and capital tied up are equally important.

Risks

• New server platform penetration is lower than expected.
• Overall server and AI infrastructure demand is lower than expected.
• Unexpected shortages of integrated circuits or other key components.
• Delays in the ramp-up of Trainium 3, AMD MI450, or NVIDIA VR200 projects.
• R&D expenses, capital expenditures, and working capital needs are higher than expected, putting pressure on margins and cash flow.
• Orders are concentrated among large cloud customers, and changes in procurement pace or supplier allocation may significantly affect performance.
• The 17.5x target P/E is near the high end of the company's historical range; if growth realization falls short of expectations, valuation may come under pressure.

What to watch

• The actual ramp-up speed of Trainium 3 in the second half of 2026 and whether WIWYNN CORP can maintain a 70%–80% rack market share.
• The share of liquid-cooled racks in 2027 and its impact on AWS sales and product mix.
• Whether AMD MI450 can enter mass production on schedule at the end of 2026 or early 2027, and the degree of realization of the 2027 assumption of about 6,000 racks.
• Meta's AI capital expenditures and AMD platform procurement scale.
• Order confirmation and actual shipments of NVIDIA VR200 for Oracle.
• Whether AI inference demand can support 39% unit growth in CPU servers in 2026 and compound growth of 17%–20% thereafter.
• Whether the Google TPU project formally selects WIWYNN CORP to participate in the L6 stage; this opportunity has not yet been included in the earnings model.
• Changes in R&D expenses, TWD 38bn annual capital expenditures, working capital, and free cash flow.
• Whether the 2027 sales mix among CPU, AWS ASIC, and GPU platforms can reach the forecast ranges in the report.