Wei Ying ( stock price hits a stop high, breaking through the 3000 yuan mark! AI orders demonstrate the ability to earn "1.34 billion yuan a day."

The stock price of 緯穎(6669) surged today (11th) with momentum to update its all-time high! It gap up to 3075 Yuan in the morning and stuck at the stop limit of 3175 Yuan during the session, marking its entry into Taiwan's “3000 Yuan Club” for the first time, surpassing all Moving Averages. Funds rushed in due to this astonishing rise, with approximately 900 buy orders lined up, and the volume exceeded 3000 shares, reaching a trading amount of 8.224 billion Yuan, making it into the top 5 listed stocks!

AI server demand generates divine performance

According to the latest financial results, Wei Ying's net profit after tax for the second quarter surged to 12.122 billion yuan, an increase of 23.78% compared to the previous quarter and a 158% increase year-on-year. The earnings per share (EPS) reached 6.523 yuan, with sales, profits, and EPS all hitting record highs!

Moreover, it is astonishing that the cumulative net profit for the first half of the year has already reached 21.916 billion yuan, an increase of 133.1% compared to the same period last year, with EPS exceeding 117.93 yuan. Sales revenue until July reached 475.928 billion yuan, surging 1.67 times compared to the same period last year! In particular, benefiting from strong demand for AWS ASIC AI servers and Meta's general-purpose servers, consolidated sales revenue for the first half of the year was 391.399 billion yuan, a 166.1% increase year-on-year, surpassing last year's total revenue in just half a year!

Texas factory to begin operations by the end of the year, 4 billion yuan investment in the new headquarters in Taipei.

Weiying has initiated a factory construction plan in Texas, USA, to strengthen the global supply chain, with operations expected to commence by the end of 2025. This will allow for flexible adjustments in production capacity alongside the existing factory in Mexico. At the same time, to support business expansion, the board of directors has approved a budget of 4 billion yuan for the construction of a headquarters building in Taipei and will increase capital by 500 million dollars (approximately 16 billion Taiwanese yuan) for its US subsidiary, significantly enhancing its financial structure and research and development capabilities.

Regarding the outlook for the second half of the year, Wiwynn faces the challenge of fluctuations in international tariff policies, while focusing on research and development in AI, computing, and cooling technologies, and diversifying risks with a new factory in Texas. Securities analysts predict that amid the “endless” demand for AI servers, Wiwynn will continue to generate explosive revenues leveraging orders from the two major cloud giants and its production capacity in North America!

I myself am amazed by the movements of this stock. It has an outstanding growth rate among Taiwanese tech stocks. However, as the US-China conflict intensifies, relocating factories to the United States may lead to increased costs. How investors evaluate this is crucial. It may also be necessary to calmly assess how long this explosive growth will continue.