Deep|Delta Electronics: 2H26 Re-acceleration on Deck, VPD Still Overlooked Delta Electronics ( the broadest play on AI power spanning the grid-to-core value chain. We expect 2H26 revenue to re-accelerate on stronger AI PSU demand and explosive VPD module growth, with GPM expanding from 26Q4 on a better mix, economies of scale, and price pass-through, and OPM improving even faster. The market, in our view, has overlooked Delta’s DC/DC business: we estimate it jumps to ~8.3%/~12.2% of total revenue in 2026/2027 on the VPD ramp, where Delta holds >70% share at US$400–600 of content per TPU. At a ~50% GPM, the mix shift should more than offset HVDC’s margin dilution. Liquid cooling should grow another ~80% in 2027, led by AWS’s IRHx, while HVDC enters volume production in 26Q4; fears of a timeline delay are overdone. With SST and SOFC optionality layering in from 2028, we model revenue growth of 53%/28% in FY27/FY28 and EPS of TWD77.3/102.4. The stock trades at ~17.8x FY28E EPS (based on the Sep 4 close of NT$1,825). Detailed Report