AI power crisis sparks energy backup concept, three stocks hit daily limit to lead the rally, funds rush to catch the tailwind

Today, the Taiwan stock market experienced volatility and weakness, but one sector defied the trend—BBU concept stocks surged across the board, with Kabuyu, Xingnenggao, and Xisheng all hitting the daily limit-up, becoming the most eye-catching focus of the market. Among them, Kabuyu(3323) closed strongly at NT$44.65, hitting the limit-up and locking in gains, driving the entire BBU industry chain to rise accordingly, attracting substantial capital to pre-position early.

The “Power Anxiety” in the Era of Hashrate Explosion: BBU Upgrades from Supporting Role to Necessity

Delving into the logic behind this wave of limit-ups, the key lies in an industry shift—the strategic position of BBU (Battery Backup Unit) is quietly transforming.

Simply put, BBU is an emergency power supply device with built-in lithium batteries. When the main power suddenly fails, it can instantly take over, providing servers with precious minutes to ensure data integrity or to shut down smoothly. In traditional communication industries, this was an optional accessory; but in the AI era, everything has changed.

With the explosive growth of AI applications like ChatGPT and large models, the global data center power demand is soaring. Industry estimates suggest that training a large AI model consumes as much electricity as hundreds of small businesses, and these high-power servers cannot afford any interruption during operation—if power is lost, hundreds of millions of dollars worth of computing results can vanish instantly. That’s why tech giants from NVIDIA to Microsoft and Google prioritize “power stability” as the top issue for data centers.

Meanwhile, the global power grid itself is facing challenges. The intermittency of renewable energy, the surge in air conditioning loads during summer, and extreme climate impacts threaten the stability of traditional grids. Against this backdrop, BBU is no longer a niche backup device but has become “the new oil in the AI era”—an indispensable strategic resource.

From Orders to Mass Production: The BBU Industry Chain Begins to Materialize

This is not hype; real orders are being fulfilled.

System Electric recently revealed at its investor conference that its BBU products are nearing certification completion, with the first cloud giant customer expected to start shipments in Q1 next year. More importantly, System Electric and Kabuyu have established a strategic alliance, with an equity stake exceeding 10%, jointly creating a “local manufacturing of BBU in the U.S.” competitive advantage—an accurate move to respond to U.S. localization procurement policies.

Xingnenggao(6558) is also making moves. The company explicitly states its goal to increase the proportion of non-consumer, high-margin products, with BBU energy storage products passing certification and expected to contribute to revenue growth next year. Companies like Shunda and Xinshengli are expanding production to capitalize on this demand wave.

What does this mean? It indicates that this is not a mere concept hype but a real industry chain preparing for genuine market demand.

Capital Game Perspective: Why Are BBU Concept Stocks Being Hotly Promoted Now?

From a market liquidity perspective, this wave of limit-ups also reflects a subtle shift in capital—when high-valuation tech stocks come under pressure, smart funds tend to rotate into those with clear fundamentals, relatively low stock prices, and obvious growth potential.

BBU concept stocks fit this profile perfectly. Stocks under NT$50 leading the rally, with high volume and a long red candlestick breaking through the seasonal line resistance, technical indicators like the daily KD showing a golden cross, and a clear short-term strengthening structure. These “volume and price rising together” signals often herald the beginning of new capital consolidation.

Meanwhile, the hotness of Tesla concept stocks and the renewable energy industry chain indirectly boosts market attention to the broader theme of “energy management.” Whether it’s energy storage systems, power management, or high-performance computing infrastructure, they are different facets of the same investment logic—in this era of energy structure upgrades, whoever controls the flow of electricity controls the future.

What to Watch for Next?

Analysts generally agree that: the medium- to long-term trend of the BBU industry is certain, while the short-term depends on the progress of orders and revenue contributions from various companies.

Focus should be on whether System Electric and Kabuyu’s shipments in Q1 next year proceed as scheduled, Xingnenggao’s BBU products’ penetration in the network communication equipment field, and the overall gross margin changes within the sector. If shipments go smoothly, the rally of BBU concept stocks may just be beginning.

In short, this is not a short-term emotional hype but a structural opportunity brought by industry shifts, worth continuous monitoring.