## Taiwan Stock King Xinhwa Continues to Hit New Highs During Trading, Driven by Three Major Factors Behind the Surge to 7,715 Yuan

**Xinhwa (5274)** today surged over 6% amid a wave of capital inflow, closing at 7,550 yuan, with an intraday high of 7,715 yuan, a new historical peak. This strong performance is not accidental but the result of multiple positive factors converging. From market sentiment to fundamentals and technical confirmation, Xinhwa's rising stock price reflects investors' high confidence in its long-term prospects.

## AI Server Upgrade Cycle Initiates, BMC Industry Leader Enters Golden Era

The primary driver of today's stock price increase stems from the accelerated global investment in AI infrastructure. With the mass production of NVIDIA's Blackwell series chips and the upcoming launch of new generation chassis designs like GB300, the application scenarios for server remote management chips (BMC) are rapidly expanding. As a global leader in this field, Xinhwa's new AST2700 chip is expected to enter mass production in 2026, featuring more advanced processes, stronger computing power, and enhanced security, which could further solidify its market position.

Institutional investors generally expect Xinhwa to benefit from this upgrade cycle. According to the latest research, the structural growth in AI server shipments in 2026 will directly drive up BMC chip unit prices and usage, laying a solid foundation for revenue and profit growth. Currently, the company's order visibility extends clearly into the second quarter of 2026, and this transparent demand outlook effectively supports a positive market sentiment toward the stock.

## Strong Earnings and Capital Support, Year-End Accounting Rally Boosts Market

In addition to industry fundamentals, the company's recent revenue performance has also become a key driver of the stock price increase. November revenue continued its strong momentum, and the company has twice revised upward its Q4 outlook. These continuous positive signals have attracted sustained buying from domestic and foreign institutional investors. Meanwhile, the traditional year-end accounting rally further fuels capital chasing the stock king. As of now, Xinhwa's market capitalization has approached NT$290 billion, setting a new record.

From a technical perspective, Xinhwa's stock price has risen for two consecutive days, with an intraday surge of over 8.6%, and remains above all moving averages. The total trading volume exceeded 570 contracts, reflecting high market consensus. Analysts generally believe that the current trend of capital flowing into growth stocks with clear prospects has been established, and Xinhwa, as a star stock, has become a focal point for capital chasing.

## Risks After Price Peak, Investors Should Exercise Caution

Despite the optimistic outlook, the fact that the stock price is at a historical high cannot be ignored. Currently, Xinhwa's P/E ratio is relatively high, indicating that the market has already priced in a significant portion of growth expectations. In the short term, the end of the year-end accounting rally or profit-taking could trigger sharp volatility.

Whether the stock price can continue to reach new highs depends on several variables: first, whether the actual shipment pace of AI servers in 2026 meets expectations; second, whether global cloud service providers' capital expenditures slow down; third, whether market expectations for the AI industry’s prosperity change.

Although short-term risks exist, from a medium- to long-term perspective, as long as the structural growth trend of AI infrastructure investment remains unchanged, Xinhwa's near-monopoly moat in the BMC field will continue to provide strong support. Currently, 16 analyst institutions have issued "Buy" ratings, with the average target price raised above 7,300 yuan, and some foreign institutions are even optimistic that the stock could challenge the 8,000 yuan level.