AI server giant Quanta Computer plans to raise up to US$2.2 billion (NT$71.2B) through a GDS (Global Depositary Share) offering in Luxembourg, media report, the biggest overseas fundraising by a Taiwan firm in nearly 20-years, media report, with the funds to be used for factory construction, component and materials purchases, more. $NVDA $AMZN $GOOGL $MSFT $META #Quanta# #AIservers#

AI Hardware Demand Growth and Representative US-Listed Companies June 2026 Executive Summary Nvidia’s transition to the Vera Rubin (VR200) platform marks a significant escalation in AI infrastructure complexity and cost. Our BOM teardown of the next-generation Rubin rack reveals a ~2x increase in total rack cost to approximately $7.8 million (vs. ~$4 million for GB300), driven not solely by the GPU/CPU but by sharp revaluations across the supply chain. Key highlights from downstream components include: • PCB content value +233% YoY, the largest increase. • MLCC +182%, reflecting higher density and count (e.g., ~600k MLCCs per VR200 NVL72 server, +30%+ vs. GB300). • ABF substrates +82%, power solutions +32%, and liquid cooling +12%. These upgrades align with broader AI scaling: 800G/1.6T optical transceivers ramping aggressively, glass-based technologies advancing for packaging and interconnects, and hyperscalers prioritizing performance, power efficiency, and thermal management. We expect sustained multi-year tailwinds for the AI hardware ecosystem into 2027+, with Rubin-driven demand accelerating in H2 2026. Investment Thesis: While Nvidia (NVDA) remains the core beneficiary, the supply chain offers diversified exposure. We favor companies with direct exposure to high-growth areas like advanced PCBs, high-speed optics, and glass substrates/optical interconnects. Risks include execution on new capacity, potential margin pressure from rapid scaling, and geopolitical supply chain factors. 1. PCB: Sharpest Value Uplift in Rubin BOM Morgan Stanley’s detailed analysis shows PCB content in the Rubin rack surging +233% versus GB300. This reflects needs for higher layer counts, advanced materials, better signal integrity, and larger formats to support increased power and interconnect density in AI servers. US Representative: TTM Technologies (TTMI) – Leading US PCB manufacturer with strong positioning in high-complexity boards for data center/AI applications. TTM has invested in capacity expansions (e.g., new facilities) to capture AI-driven demand for advanced HDI and high-layer PCBs. 2. MLCC: Density-Driven Surge Nvidia’s VR200 NVL72 platform requires ~600,000 MLCCs per server, over 30% more than GB300. Combined with the +182% value increase in the BOM, this underscores tightening supply for high-capacitance, high-reliability MLCCs in power delivery and decoupling for AI accelerators. Exposure Note: The MLCC market is dominated by Asian players (e.g., Murata, Samsung Electro-Mechanics, Yageo). US-listed indirect exposure may come through broader electronics or power solution providers, but direct pure-play opportunities are limited. Watch for capacity utilization tightness benefiting the ecosystem. 3. Optical Communication: 800G/1.6T Ramp Accelerating Chinese leader Zhongji Innolight reported Q1 2026 net profit +262% YoY, driven by strong 800G/1.6T shipments, with expectations of significant full-year growth. This mirrors industry-wide momentum as AI clusters shift toward higher-speed optics for reduced latency and power in scale-out/scale-up networking. Nvidia’s investments in photonics and CPO further validate the trend. US Representatives: • Coherent (COHR) and Lumentum (LITE): Key players in optical components and transceivers; Nvidia has made substantial equity investments to secure capacity. • Corning (GLW): Major beneficiary via optical fiber, connectivity, and glass technologies (detailed below). 4. Micro-LED/Glass Substrates & Optical Interconnects: Strategic Partnerships Accelerating On May 20, 2026, BOE announced a cooperation MOU with Corning covering glass-based encapsulation carriers, foldable glass, perovskite substrates, and optical interconnect applications. This aligns with industry shifts toward glass cores for superior flatness, thermal stability, and integration in advanced packaging and photonics—critical for next-gen AI as organic substrates hit limits. US Representative: Corning (GLW) – Central to Nvidia’s optical strategy with multi-billion partnerships, new US optical factories, and expansion in fiber/photonics for AI data centers. Recent deals position GLW for 10x+ capacity growth in key areas. AI Hardware Demand Growth & US-Listed Representative Companies Table Component Demand Growth (vs. GB300) Key Drivers US-Listed Reps Investment Rationale PCB +233% value Higher layers, HDI, signal integrity TTM Technologies (TTMI) Direct AI server/backplane exposure; US capacity expansion MLCC +182% value; +30%+ count Power density in servers Limited direct (ecosystem via power suppliers) Supply tightness supports pricing/volume Optical Comm (800G/1.6T) Strong ramp (e.g., +262% profit ex.) Scale-out networking, CPO transition Coherent (COHR), Lumentum (LITE), Corning (GLW) Nvidia investments; transceiver/fiber boom Glass Substrates/Interconnects Emerging (MOU-driven) Packaging, photonics, thermal/optical Corning (GLW) Nvidia factory deals; US manufacturing tailwinds Power & Liquid Cooling +32% / +12% Higher TDP (e.g., 2300W GPUs) Indirect (ecosystem) Secondary but critical for rack deployment Source: Morgan Stanley BOM analysis, company reports, industry data. Growth metrics approximate from Rubin teardown. Outlook & Risks We project robust 2026-2027 growth in AI capex, with Rubin shipments catalyzing another leg-up in component demand. Optical and advanced substrate shifts could extend the cycle beyond traditional GPU focus. Hyperscalers’ vertical integration and US onshoring (e.g., Corning/Nvidia factories) add resilience. Key Risks: Cyclical capex pauses, yield/execution challenges on new tech (glass/CPO), commodity volatility in passives, and intense competition in Asia-heavy segments. Valuation multiples in the space have expanded; selectivity is key. Recommendation: Overweight select supply chain names with strong Nvidia alignment (e.g., TTMI for PCBs, COHR/LITE/GLW for optics/glass). Monitor Q2 2026 earnings for confirmation of Rubin ramp momentum.

Smuggling AI servers into China didn’t change the downward trend in Super Micro’s gross margin Excerpt: "...servers sold for $510 million between late April 2025 and mid-May 2025..." Full article: At least ~10% of Super Micro’s 2Q CY2025 revenue was tied to servers reportedly smuggled into China. In theory, these should carry much higher margins, but gross margin still declined sharply to 9.6% (vs. 11.3% in 2Q CY2024). Two possibilities: 1. Margins in the legitimate business are simply too weak. This is consistent with my earlier view that AI server assembly margins are under pressure ( Super Micro’s structural disadvantages, including smaller scale and weaker execution, further amplify margin pressure. 2. Super Micro likely wasn’t the only one involved in smuggling. With alternatives available, buyer leverage increased, so margins on those sales were probably not as high as expected.

FOXCONN’S LARGEST REVENUE SOURCE IS NOW AI SERVERS AND CLOUD HARDWARE Q1 revenue rose 29% YoY to about $67B. Net profit rose 19% YoY to about $1.6B. Cloud and networking products, including AI servers, made up almost half of total revenue. Smart consumer electronics, including smartphones, were about one-third. Foxconn said next-gen AI server rack shipments for a major client are slated to begin in Q3.

"In 2027, driven by strong demand from AI servers, DRAM bit demand growth will continue to outpace supply, extending the seller’s market and high-price environment." -Trendforce Structural Shift $MU $SKHY $DRAM

👀 #TSMC#'s COUPE on Substrate tech is expected to hit mass production in 2H26 — and if #CPO# gains traction in AI servers, #NVIDIA# may look to lock in high-end substrate capacity early via long-term deals. 💡More: 🔗

From Samsung Electronics Q2 Earnings Call Q: Do you expect the current memory shortage to persist into next year? If possible, could you also share your medium- to long-term outlook for memory demand? A: The rapid acceleration of agentic AI is driving an explosive increase in token consumption. This is fueling unprecedented demand not only for AI servers but also for general-purpose computing servers. In practice, AI frontier model developers that have been unable to secure sufficient cloud capacity from hyperscalers are now requesting allocations from neocloud providers as well. This has translated into large-scale memory procurement by server OEMs that primarily serve those neocloud customers. Even so, memory shortages mean that many frontier AI companies are still unable to secure the infrastructure they need. To address this, they have begun sharing their medium- to long-term demand forecasts directly with us and expressing their intention to purchase memory from Samsung. We are also seeing the start of requests for long-term supply agreements (LTAs) to secure additional volume. As the adoption of agentic AI continues to accelerate, memory demand is expanding at an exceptionally rapid pace. Industry supply remains well below demand. Even with increased industry-wide capex, it takes more than three and a half years from the construction of a new fab to wafer production. As a result, meaningful supply expansion through new capacity additions will take considerable time. We therefore believe a significant increase in industry supply before 2028 is unlikely. Based on the demand visibility we currently have from customers, a substantial amount of unmet demand will roll over into next year, creating additional supply pressure. We expect the memory shortage in 2027 to be even more severe than it is this year, with tight supply conditions likely to persist into 2028. Looking beyond 2029, it is still too early to make definitive projections. However, as AI token demand continues to surge, large customers building long-term AI infrastructure are expected to continue requesting multi-year supply agreements. These long-term agreements are well aligned with our objective of hedging future business risks. We intend to prioritize contracts with customers that can provide firm, long-term demand commitments. Over time, this should allow us to transition away from the historically cyclical nature of the memory industry toward a more stable and predictable business model. With improved long-term demand visibility through LTAs, we will be in a better position to execute a more flexible supply strategy. Following our existing approach of securing cleanroom infrastructure in advance and installing production equipment in line with demand, we expect to further strengthen this disciplined and flexible capacity expansion strategy.

If $AMD wins, $TSM Advanced Foundry Process and Advanced Packaging win. Also a win for $DRAM as it packs 50% more memory than competitors. “AMD unveils its sixth-generation EPYC 9006 server CPU and Instinct MI455X GPU, expanding its AI portfolio across agentic AI, cloud computing, enterprise, and high-performance computing (HPC). … the move is expected to drive demand for TSMC’s advanced packaging technologies, including CoWoS-L and SoIC.” “AMD notes that the EPYC Venice processor has entered volume production on TSMC’s advanced 2nm process technology, while the MI455X is built using TSMC 2nm and 3nm FinFET technologies.” “The MI455X integrates 320 billion transistors using multiple advanced packaging technologies. Four Accelerator Complex Dies (XCDs) are hybrid-bonded onto each Fabric and Cache Die (FCD), while the two FCDs are interconnected with 12 HBM4 stacks, two I/O dies, and each other using TSMC’s CoWoS-L packaging technology.” “Some high-end EPYC Venice models are reportedly expected to adopt TSMC’s CoWoS-L packaging and be manufactured at TSMC’s Kaohsiung Fab 22, with production expected to ramp in the second half of 2026 to support growing demand for agentic AI servers.” “CoWoS-L capacity remains tight. … some Chip-on-Wafer (CoW) orders are expected to be outsourced to ASE, while TSMC and OSAT providers continue expanding CoWoS capacity with visibility extending through 2027 and 2028.” “AMD’s MI450, MI455X, and future AI chips are expected to boost SoIC (System-on-Integrated-Chips) demand. Institutional investors … estimate that TSMC’s SoIC capacity will reach 15,000–20,000 wafers per month by the end of 2026, before doubling again by the end of 2027.” “AMD’s Instinct MI455X adopts HBM4 memory, increasing capacity by 50% from 288GB of HBM3E on the MI350 series to 432GB. Memory bandwidth also rises to 22.3 TB/s, up 2.8× from 8 TB/s on its predecessor.” “The MI455X delivers up to 40 PFLOPs of FP4 and 20 PFLOPs of FP8 performance—roughly doubling the compute capability of the MI350 series. By comparison, Nvidia’s Rubin GPU provides 50 PFLOPs of FP4 and 17.5 PFLOPs of FP8 performance.” (Nvidia Rubin is noted with 288GB HBM4 and up to 22 TB/s bandwidth.)

BREAKING: AMD, $AMD, and Anthropic have signed a deal for "tens of billions of Dollars" worth of AI servers, per WSJ. Details include: 1. Anthropic will purchase up to 2 gigawatts of AMD’s latest-generation chips, the Instinct MI450, starting in the first half of 2027 2. AMD will invest up to $5 billion in Anthropic as certain deployment milestones are met 3. AMD is also in talks to provide a financial backstop for Anthropic’s future data-center leases as well AMD continues to look for ways to strengthen its positioning against Nvidia and others.