[Edaily Reporter Shin Ha-yeon ] GigaVis Co., Ltd.(420770)is up more than 12% in early trading.
According to MP Doctor on the 22nd, as of 9:08 a.m. today, GigaVis Co., Ltd.(420770)is trading at 156,500 won, up 12.59% from the previous trading day.
This is believed to be driven by the securities industry identifying GigaVis Co., Ltd. as the biggest beneficiary of expanded investment in high-performance semiconductor substrates (ABF) for artificial intelligence (AI) servers, which has stimulated investor sentiment.
Yang Seung-soo, an analyst at Meritz Securities, stated, “This ABF substrate investment cycle is expected to significantly exceed past upcycles in terms of both investment scale and sustainability,” adding, “We maintain a positive outlook given that equipment manufacturers’ investment appeal is most prominently highlighted in a capital expenditure (Capex) cycle that far exceeds market expectations.”
In particular, he forecast that rising demand for high-specification semiconductors driven by the proliferation of AI will lead to expanded investment in ABF substrates. The analysis suggests that as demand—which was previously centered on GPUs and ASICs—spreads to network ICs (switches, DPUs), server CPUs, and LPUs, a structural shortage of high-performance substrates is emerging.
He noted, “Starting this year, demand for high-end ABF substrates is rapidly expanding beyond the traditional focus on GPUs and ASICs to include network ICs, server CPUs, and LPUs,” adding, “Combined with rising production difficulties due to larger areas, higher multilayer counts, and finer circuit patterns, as well as the erosion of actual production capacity (Capa), the supply shortage is emerging as a structural issue in the medium to long term.”
Researcher Yang projected GigaVis Co., Ltd.’s second-quarter consolidated revenue and operating profit at 17.7 billion won and 4.3 billion won, respectively. These figures represent year-over-year increases of 98.9% and 110.0%, respectively, with operating profit exceeding the market consensus (3.5 billion won) by 23.8%.