Macquarie has highlighted a group of five Taiwanese electronics firms it views as structurally exposed to secular growth driven by AI-related infrastructure investments and adjacent technology shifts. The broker's picks span contract manufacturers, thermal-management businesses and power-systems suppliers, reflecting its view that rising compute intensity and new display applications will create multiple growth paths across the island's hardware ecosystem.
Below is a company-by-company synopsis of the names Macquarie singled out and the specific growth vectors the broker expects to drive performance.
Hon Hai Precision Industry
Macquarie characterizes Hon Hai as a structural beneficiary of expanding AI infrastructure spending. The broker argues that original design manufacturers (ODMs) such as Hon Hai are undervalued relative to their earnings trajectory, trading around historical average multiples despite delivering above-average profit growth. New business lines, notably co-packaged optics, are identified as potential catalysts for valuation re-rating even if initial revenue contributions from those lines remain modest.
E Ink
Macquarie views E Ink as an undervalued growth story. The broker projects that the company's core electronic shelf label (ESL) business could compound at an annual rate of 20-30% over the next three years. Importantly, Macquarie points to a signage segment that began ramping meaningfully in 2026 and which the broker expects to become a larger long-term market opportunity than ESL itself, providing a second growth engine that the market has not fully discounted.
AVC
For AVC, Macquarie is bullish on the company's exposure to the adoption of liquid cooling in next-generation AI servers. The broker notes rising content per server and recent share gains at Google as near-term demand drivers. More broadly, Macquarie sees the migration toward higher power density AI infrastructure as a multi-year structural tailwind for AVC's thermal-management products.
Wiwynn
Macquarie describes Wiwynn as a laggard with upside potential as it catches up to improving server demand and a stronger-than-feared ramp of AWS Trainium. The broker believes the market has been overly cautious about Wiwynn's combined exposure to AI ASIC platforms and traditional server infrastructure, making it an attractive risk-reward opportunity among Taiwanese server hardware names.
Delta Electronics
Delta is framed by Macquarie as a high-conviction power-infrastructure play. The broker expects per-rack energy consumption in AI data centers to surge and notes growing adoption of high-voltage direct current (HVDC) architecture. Macquarie projects that Delta's power content per server will increase structurally with each generation of AI hardware, underpinning a long-term bullish case for the company within Taiwan technology coverage.
Collectively, these selections reflect Macquarie's emphasis on hardware and component providers that should benefit from AI-driven increases in server power density, the uptake of advanced cooling technologies and the emergence of new display markets. The broker's approach highlights multiple, discrete revenue vectors - from co-packaged optics and signage to liquid cooling and HVDC power systems - rather than a single dependency on general server demand.
Implications for markets and sectors
Macquarie's list underscores potential structural growth across several market segments: contract manufacturing and ODM services, data-center power and cooling infrastructure, and niche display and signage markets. Investors focused on AI hardware supply chains and data-center modernization may find these names relevant to exposure in those themes.