Hongzhifa talks: AI revenue share is expected to increase, and the target is to double again in 2027

Hongzhi Chief Operating Officer Yang Zonglin (from right) and Finance Department Vice President Li Shuyun were invited to attend a briefing today and were optimistic about the company's future operating prospects. (Photo by reporter Fang Weijie)

The AI server layout of Acer (3605), a connection component manufacturer, has entered a growth stage. In the second quarter of this year, AI revenue accounted for 20%, and the target for the fourth quarter has been further increased to 30%. The company is optimistic about the simultaneous growth of its two major product lines, computing power and power. AI revenue will at least double in 2027. Among them, the shipment target of high-speed connectors next year will exceed 50 million units, and the revenue of high-power power products will challenge 2 to 3 billion yuan.

Li Shuyun, vice president of Hongzhi, said at the conference today that AI computing power products mainly include high-speed connectors and high-speed transmission lines. Among them, high-speed connectors will be shipped about 12 million units in the first half of 2026, and customer shipment targets in the second half of the year are about 20 to 21 million units. The full-year estimate Shipments are between 32 million and 33 million units, and the internal target for 2027 has been further increased to more than 50 million units. In response to subsequent demand, the monthly production capacity of high-speed connectors has reached 4 million units in September, and is expected to increase to 5 million units by the end of the year, preparing production capacity in advance for next year's shipments.

Li Shuyun said that in addition to benefiting from the increase in the number of AI servers for high-speed connectors, cloud service provider (CSP) customers' application special integrated circuit (ASIC) models began to increase in volume in the second half of the year, which is also a major growth driver. Compared with the past, when each server used about 10 high-speed connectors, the average number of ASIC models has increased to 25 to 30, driving an increase in the value of stand-alone products. Currently, relevant platforms include Intel, NVIDIA and ASIC, of ​​which ASIC products account for about 80%. In 2027, the number of mass-produced models of the second US-based CSP will also increase.

Acer's current main shipments are still based on PCIe Gen 5. ASIC models will begin to introduce PCIe Gen 6 in 2026. It is estimated that Gen 6 will become the mainstream specification in the market in 2027. After upgrading from Gen 5 to Gen 6, product value is expected to increase by 10% to 15%. In addition to high-speed connectors, high-speed transmission lines were still in the sample delivery stage last year and began mass production and shipment in the second quarter of this year. They will account for about 2% of the full-year revenue in 2026. The company has set a revenue growth of 2 to 3 times in 2027.

In addition to computing power products, Acer is simultaneously expanding its AI power infrastructure layout. High-power power products have begun to increase in volume in the second quarter of this year. The shipment amount in the first half of the year is about 200 million yuan. The shipment ratio in the first and second half of the year is estimated to be about 3:7. The shipment amount by the end of this year can exceed 1 billion yuan. The current order visibility has reached June to August 2027. The company estimates that the revenue of high-power power products in 2027 will increase from about 1 billion yuan this year to 2 to 3 billion yuan, and the internal assessment is close to 3 billion yuan, which is more feasible.

Hongzhi also continues to promote a new generation of power products, and is currently jointly developing 800V direct current (DC) output-related wires with customers. The customer is expected to conduct sample trial production at the end of this year, and the mass production schedule will be at the end of the first quarter of 2027. The company pointed out that the new 800V DC products have not yet been included in the existing outlook for 2027, and will adjust the relevant operating estimates after customer purchase orders are confirmed at the end of the year.