J.P.摩根点评台达电337调查：短期影响有限，维持增持与2500新台币目标价

J P M O R G A N

Asia Pacific Equity Research
12 October 2026

Delta Electronics, Inc.
Section 337 investigation: Limited near-term impact

Overweight
2308.TW, 2308 TT
Price (08 Oct 26):NT$1,965.00
Price Target (Jun-27):NT$2,500.00

The U.S. International Trade Commission (USITC) has instituted a Section 337
investigation into alleged patent violations (complaint filed by Vicor Power; link)
related to certain vertical power delivery (VPD) system designs. Delta is one of 20
companies named in the investigation. The following is our view:

•

Mid- to high-single-digit DC/DC revenue exposure. We estimate DC/DC
server power represents ~6% of Delta’s 2026 revenue, driven primarily by
Google VPD modules (the impacted area), with a smaller contribution from
Nvidia HGX-related lateral power products. We forecast Delta’s DC/DC
power revenue to grow ~60% YoY in 2027, supported mainly by Google TPU
volume growth, and to account for ~7% of total company revenue next year.
We also see upside risk to our DC/DC outlook from the recent CoWoS estimate
uplift (link).

•

Investigation does not imply an immediate shipment restriction. Delta is
required to respond to the complaint and notice of investigation within 20 days.
The initiation of an investigation does not imply a violation of Section 337. The
investigation process is typically lengthy (~1.5 years based on prior cases).
Most importantly, this investigation does not impose restrictions on Delta’s
shipments.

•

Licensing or redesign offers a potential path to supply continuity. Vicor has
previously pursued ITC cases against Delta and other supply-chain players,
with the investigation initiated in Aug 2023 resulting in a limited exclusion
order in Feb 2025. The prior case demonstrates that adverse rulings can restrict
imports of infringing modules and computing systems containing them. Given
the lengthy investigation process, we see limited near-term risk to Delta’s
shipments or customer engagement. In our downside case, Delta could pay
licensing fees to Vicor and continue shipping the redesigned products. Overall,
we view the potential impact as limited and manageable.

Technology - Hardware
Albert Hung AC
(886-2) 2725-9875
albert.hung@jpmchase.com
J.P. Morgan Securities (Taiwan) Limited/ J.P.
Morgan Securities (Asia Pacific) Limited/ J.P.
Morgan Broking (Hong Kong) Limited

James Yang
(886-2) 2725-9298
james.yang@jpmchase.com
J.P. Morgan Securities (Taiwan) Limited

Gokul Hariharan AC
(852) 2800-8564
gokul.hariharan@jpmorgan.com
J.P. Morgan Securities (Asia Pacific) Limited/ J.P.
Morgan Broking (Hong Kong) Limited

See page 3 for analyst certification and important disclosures, including non-US analyst disclosures.

Albert Hung AC
(886-2) 2725-9875
albert.hung@jpmchase.com

Asia Pacific Equity Research
12 October 2026

JPMORGAN

Investment Thesis, Valuation and Risks
Delta Electronics, Inc. (Overweight; Price Target: NT$2,500.00)
Investment Thesis
We believe Delta will be a major beneficiary of the secular power and thermal demand in
AI datacenters. Delta is well positioned in the market, in our view, and has a dominant share
in key customers. We expect the stock to regain momentum over the next three months as
data center-related revenues re-accelerate. More importantly, we see a favorable setup for
Delta in the next two years – with power rack/BBU adoption, rising value per watt of dense
PSUs, and initial HVDC adoption this year. Overall, we remain constructive on the data
center power outlook, but component supply remains the key overhang. Stay OW.
Valuation
Our Jun-27 PT of NT$2500 is based on 33x 12M fwd EPS, higher than the historical
valuation range due to the exponential growth of AI server power consumption and Delta’s
leading position in the AI datacenter power and thermal space.
Risks to Rating and Price Target
Key downside risks include more severe-than-expected component shortages, market share
losses in AI liquid cooling/ server power, and a delay in Nvidia’s new product launch
schedule.

2

Albert Hung AC
(886-2) 2725-9875
albert.hung@jpmchase.com

Asia Pacific Equity Research
12 October 2026

JPMORGAN

Analyst Certification: The Research Analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple Research Analysts
are primarily responsible for this report, the Research Analyst denoted by an “AC” on the cover or within the document individually certifies,
with respect to each security or issuer that the Research Analyst covers in this research) that: (1) all of the views expressed in this report
accurately reflect the Research Analyst’s personal views about any and all of the subject securities or issuers; and (2) no part of any of the
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All authors named within this report are Research Analysts who produce independent research unless otherwise specified. In Europe, Sector
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Important Disclosures
Market Maker/ Liquidity Provider: J.P. Morgan is a market maker and/or liquidity provider in the financial instruments of/related to Delta
Electronics, Inc. or related entities.
Client: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as clients: Delta Electronics, Inc. or related
entities.
Client/Non-Investment Banking, Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies)
as clients, and the services provided were non-investment-banking, securities-related: Delta Electronics, Inc. or related entities.
Client/Non-Securities-Related: J.P. Morgan currently has, or had within the past 12 months, the following entity(ies) as clients, and the
services provided were non-securities-related: Delta Electronics, Inc. or related entities.
Potential Investment Banking Compensation: J.P. Morgan expects to receive, or intends to seek, compensation for investment banking
services in the next three months from Delta Electronics, Inc. or related entities.
Non-Investment Banking Compensation Received: J.P. Morgan has received compensation in the past 12 months for products or services
other than investment banking from Delta Electronics, Inc. or related entities.
Debt Position: J.P. Morgan may hold a position in the debt securities of Delta Electronics, Inc. or related entities, if any.
Company-Specific Disclosures: J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors
should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report
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https://www.jpmm.com/research/disclosures , calling 1-800-477-0406, or e-mailing research.disclosure.inquiries@jpmorgan.com with your
request.
Date

Rating

Price (NT$) Price Target
(NT$)

01-Nov-23

OW

290.50

350

21-Jun-24

OW

369.50

430

01-Aug-24

OW

414.50

470

25-Mar-25

OW

392.00

500

01-May-25

OW

333.50

490

20-Jul-25

OW

509.00

630

01-Aug-25

OW

567.00

680

11-Sep-25

OW

837.00

1,000

15-Oct-25

OW

992.00

1,188

21-Jan-26

OW

1130.00

1,400

27-Feb-26

OW

1430.00

1,700

27-Apr-26

OW

2075.00

2,600

31-Jul-26

OW

1530.00

2,500

The chart(s) show J.P. Morgan's continuing coverage of the stocks; the current analysts may or may not have covered it over the entire period.
J.P. Morgan ratings or designations: OW = Overweight, N= Neutral, UW = Underweight, NR = Not Rated

3

Albert Hung AC
(886-2) 2725-9875
albert.hung@jpmchase.com

Asia Pacific Equity Research
12 October 2026

JPMORGAN

Explanation of Equity Research Ratings, Designations and Analyst(s) Coverage Universe:
J.P. Morgan uses the following rating system: Overweight (over the duration of the price target indicated in this report, we expect this stock will
outperform the average total return of the stocks in the Research Analyst’s, or the Research Analyst’s team’s, coverage universe); Neutral (over
the duration of the price target indicated in this report, we expect this stock will perform in line with the average total return of the stocks in the
Research Analyst’s, or the Research Analyst’s team’s, coverage universe); and Underweight (over the duration of the price target indicated in
this report, we expect this stock will underperform the average total return of the stocks in the Research Analyst’s, or the Research Analyst’s
team’s, coverage universe. NR is Not Rated. In this case, J.P. Morgan has removed the rating and, if applicable, the price target, for this stock
because of either a lack of a sufficient fundamental basis or for legal, regulatory or policy reasons. The previous rating and, if applicable, the
price target, no longer should be relied upon. An NR designation is not a recommendation or a rating. Some stocks under coverage have a rating
but no price target; in these cases, we expect the stock will outperform/perform in line/underperform the average total return of the stocks in the
Research Analyst’s, or the Research Analyst’s team’s, coverage universe of the relevant duration of the region. In our Asia (ex-Australia and exIndia) and U.K. small- and mid-cap Equity Research, each stock’s expected total return is compared to the expected total return of a benchmark
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the certifying Research Analyst’s coverage universe can be found on J.P. Morgan’s Research website, https://www.jpmorganmarkets.com .
Coverage Universe: Hung, Albert : ASPEED Technology Inc. (5274.TWO), ASUSTek Computer (2357.TW), Accton (2345.TW), Compal
Electronics, Inc. (2324.TW), Delta Electronics, Inc. (2308.TW), Inventec (2356.TW), Lenovo Group Limited (0992) (0992.HK), Lotes
(3533.TW), Micro-Star International Co., Ltd. (2377.TW), Pegatron Corp (4938.TW), Quanta Computer Inc. (2382.TW), VNET Group
(VNET), Wistron Corporation (3231.TW), Wiwynn Corp (6669.TW)Hariharan, Gokul : ASE Technology Holding Co Ltd (3711.TW),
ASMPT Ltd (0522) (0522.HK), AirTAC (1590.TW), Alchip Technologies (3661.TW), Chipbond Technology (6147.TWO), GDS Holdings
(GDS), GUC (3443.TW), Hiwin (2049.TW), Hon Hai Precision (2317.TW), MediaTek Inc. (2454.TW), Nien Made (8464.TW), Novatek
Microelectronics Corp. (3034.TW), Powerchip Semiconductor Manufacturing Corp. (6770.TWO), SMIC (0981) (0981.HK), Silicon Motion
(SIMO), Sinbon (3023.TW), TSMC (2330.TW), Teco Electric & Machinery (1504.TW), UMC (2303.TW), Vanguard International
Semiconductor Corp. (5347.TWO), Voltronic Power Technology (6409.TW), Xiaomi (1810) (1810.HK)
J.P. Morgan Equity Research Ratings Distribution, as of October 03, 2026

J.P. Morgan Global Equity Research Coverage*
IB clients**
JPMS Equity Research Coverage*
IB clients**

Overweight
(buy)
53%
83%
51%
95%

Neutral
(hold)
35%
81%
37%
93%

Underweight
(sell)
12%
72%
12%
88%

*Please note that the percentages may not add to 100% because of rounding.
**Percentage of subject companies within each of the "buy," "hold" and "sell" categories for which J.P. Morgan has provided
investment banking services within the previous 12 months.
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4

Albert Hung AC
(886-2) 2725-9875
albert.hung@jpmchase.com

Asia Pacific Equity Research
12 October 2026

JPMORGAN

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(886-2) 2725-9875
albert.hung@jpmchase.com

Asia Pacific Equity Research
12 October 2026

JPMORGAN

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(886-2) 2725-9875
albert.hung@jpmchase.com

Asia Pacific Equity Research
12 October 2026

JPMORGAN

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7

Albert Hung AC
(886-2) 2725-9875
albert.hung@jpmchase.com

Asia Pacific Equity Research
12 October 2026

JPMORGAN

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Completed 12 Oct 2026 07:25 AM HKT

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Disseminated 12 Oct 2026 07:25 AM HKT