Goldman Sachs maintains Buy on WUS, seeing AI PCB demand and capacity expansion supporting growth

Overview

This report is Goldman Sachs's company research update following its meeting with WUS management during the Shanghai China Tech Tour on May 22, 2026. The main conclusion is that management remains constructive on AI PCB demand and the company's growth outlook; capacity expansion should support shipment growth and drive the revenue mix toward higher-end products. Goldman Sachs maintains a Buy rating on WUS.

Core views

Goldman Sachs is positive on WUS mainly for three reasons: first, the AI infrastructure upcycle is continuing, and the implied number of AI chips in AI servers is expected to keep growing rapidly; second, rising demand for high-speed connectivity is driving PCB material improvements and higher layer counts; third, PCB usage is increasing in AI server cabinets, between trays, and in chip-connection applications. The company's expansion is not based solely on high utilization, but instead on end demand, technology readiness, and product quality, with the goal of converting new capacity into revenue and further improving the product mix.

Analysis framework

The report combines management visit insights, forecasts for AI servers and ASIC penetration, global PCB TAM growth assumptions, the company's capex cadence, and valuation based on the correlation between peer P/E multiples and EPS growth. The target price is derived from 2027E EPS and a 23x target P/E.

Methodology notes

• Valuation methodsTarget P/E valuation

  Derive the 12-month target price from 2027E EPS and a 23x target P/E

  Goldman Sachs says the Rmb142 12-month target price comes from 23x 2027E EPS, and that the target P/E is derived from the correlation between WUS's peer P/E multiples and EPS growth, based on the company's 2027-2028E EPS growth.

• Fundamental AnalysisAI PCB demand and spec-upgrade framework

  AI server growth, ASIC penetration, PCB specification upgrades, and higher PCB content per cabinet jointly drive PCB TAM

  The report uses implied AI chip growth in AI servers, ASIC penetration, material and layer-count upgrades, and connection scenarios such as midplane, backplane, and CoWoP to explain WUS's demand outlook and product-mix improvement.

• Goldman Sachs Proprietary FrameworkGS Factor Profile

  Compare stock characteristics across growth, financial returns, valuation multiple, and integrated dimensions

  The disclosure appendix explains that GS Factor Profile uses standardized rankings to measure Growth, Financial Returns, Multiple, and Integrated, and is used to provide investment context for stocks.

Asset mapping & comparison

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

• WUS 002463.SZ

  Covered company in the report, a beneficiary of AI PCB and high-end server PCB demand

  Strengths

  Management is constructive on AI PCB end demand; the company has capacity expansion plans; Goldman Sachs believes the AI infrastructure upcycle, specification upgrades, and higher PCB usage will support growth and product-mix improvement.

  Weaknesses

  Growth depends heavily on the pace of migration toward AI servers and high-speed switches; new capacity needs to translate into revenue smoothly; high capex may increase execution requirements.

  Comparison

  The valuation target P/E references the relationship between peer P/E and EPS growth, derived from the company's 2027-2028E YoY EPS growth.

  Risks

  Migration toward high-end AI servers and high-speed switches is slower than expected; competition in AI PCB is stronger than expected; new capacity ramps more slowly than expected.

• Global PCB supply chain

  Indirect beneficiary of AI server PCB TAM expansion

  Strengths

  PCB usage rises in AI server cabinet interconnects, tray-to-tray interconnects, and chip interconnects, while material and layer-count upgrades lift value per unit.

  Weaknesses

  Industry momentum depends on AI infrastructure investment and the sustainability of end demand.

  Comparison

  Goldman Sachs expects global PCB TAM value to grow by 113%/171% YoY in 2026/2027E.

  Risks

  Slower AI hardware demand, technology-route changes, increased competition, or pricing pressure could weaken realization of TAM growth.

Key data

• RatingBuyThe body of the report states Maintain Buy.
• 12-month target priceRmb142Based on a 23x 2027E EPS target P/E.
• Disclosed priceRmb114.07The company-specific regulatory disclosure lists the WUS price.
• Closing price in the target price history tableRmb108.71The 2026-05-10 target price history table lists a target price of Rmb142.00 and a closing price of Rmb108.71.
• Implied AI chip growth in AI servers2026E/2027E YoY +49%/+31%Goldman Sachs cites this expectation from its January report in the body of the report.
• ASIC penetration40%/50% in 2026E/2027EUsed to support the view that AI server PCB demand is upgrading.
• Global PCB TAM value growth2026E/2027E YoY +113%/+171%Goldman Sachs believes this trend is favorable for WUS's growth and product-mix upgrade.
• Capex4Q25/1Q26 qoq +53%/+34%; expected to reach Rmb6bn in 2026EGoldman Sachs expects 2026E capex to double from Rmb3bn in 2025 and remain elevated through 2028E.

Impact & implications

If Goldman Sachs's view is correct, WUS should benefit from capex across the AI server supply chain, higher PCB layer counts and material specifications, and the higher per-unit value created by additional internal connectivity solutions inside cabinets. The company's expansion strategy, focused on non-commodity and high-demand products, may improve the efficiency with which new capacity converts into revenue and support revenue-mix upgrades. However, valuation realization depends on the pace of migration toward high-end AI servers and high-speed switches, industry competition, and the ramp-up of new capacity. Goldman Sachs discloses that it has an investment-banking relationship with WUS and potential conflicts of interest, so investors should assess the research conclusion in light of these disclosures.

Risks

• Migration toward high-end AI servers and high-speed switches is slower than expected.
• Competition in AI PCB is stronger than expected.
• New capacity expansion is slower than expected.
• If high capex does not convert effectively into revenue, returns may be dragged down.
• Goldman Sachs discloses potential conflicts of interest, including shareholding, investment-banking services, or related compensation sought, so the research conclusions should be interpreted carefully.

What to watch

• Whether AI server shipments, AI chip demand, and ASIC penetration meet the 2026/2027E expectations.
• WUS's new capacity construction, ramp-up, yield, and revenue conversion efficiency.
• Changes in the revenue share of high-layer-count, high-speed-material, and non-commodity PCB products.
• AI PCB industry competition intensity, pricing changes, and customer order sustainability.
• Whether capex stays elevated and whether it leads to product-mix upgrades and earnings growth.