Asia Plus Securities noted in its analysis that Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) reported sales in August 2026 of TWD 510 billion, representing a 10% increase from the previous month and a substantial 53% growth compared to the same period last year.
Total sales for the first two months of 3Q26 (July–August) reached TWD 980 billion, up 49% year-on-year and 14% quarter-on-quarter. Meanwhile, sales in September are also expected to be supported by the ongoing global expansion of investment in AI and data centers by major cloud and data center operators.
According to the brokerage, as TSMC is the world’s largest manufacturer of AI chips, its strong sales performance is seen as an indicator that global investments in AI and data centers remain robust. This continued expansion is expected to have a positive impact on related industries, including the global semiconductor and electronics sectors. Thai companies participating in the supply chain, such as DELTA, HANA, and KCE, are also expected to benefit.
Asia Plus believes that overall sentiment in 3Q26 for Thai electronics stocks is likely to be positive, in line with a continued upcycle in the global semiconductor and electronics sectors. Furthermore, the quarter is typically the high season for Thai electronics exports, leading to expectations that the sales and profits of local companies will reach their annual peak during this period.
Following these developments, the analyst maintains an ‘Overweight’ recommendation on the Thai electronics sector, anticipating that third-quarter profit will grow both quarter-on-quarter and year-on-year. This is also expected to drive the group’s 2026 normalized earnings by approximately 43% year-on-year, with continued growth into 2027 at around 41% year-on-year, in line with the ongoing industrial upcycle.
DELTA is selected as the top pick for several reasons: First, the global investment surge in AI and data centers is expected to directly benefit the company more than other players due to its position as a key supplier of power supply and cooling systems for AI and data centers.
Secondly, DELTA is projected to deliver the strongest average profit growth in 2026-2027 at about 42%. Lastly, despite its share price rising 56% year-to-date, the stock is still considered a laggard compared to HANA and KCE, which have risen by 187% to 209%.
