Electronics Manufacturing Services
All research in Electronics Manufacturing Services — 4 reports.
Wistron Corporation has transformed from a notebook ODM into a manufacturer of NVIDIA AI server compute boards and racks, while holding a 40.13% stake in Wiwynn. Revenue doubled in 2025 to TWD 2.1865 trillion and AI revenue reached 79%, but gross margin fell to 6.1% and operating cash flow turned sharply negative. Report Rating Hold: the transformation has already been priced in, while cash flow and margins do not support a more aggressive premium; the ideal buy range is TWD 105 to 120.
Celestica is a Canadian electronics manufacturer that builds high-bandwidth switches and AI data center platforms for hyperscale cloud customers, with CCS and ATS as its two operating pillars. Q1 2026 revenue grew 52.8% year over year to $4.047 billion and full-year guidance was raised to about $19.0 billion, but full-year free cash flow guidance is only about $500 million, implying a yield of roughly 1.2%. Research rating Hold: the business reinvention has already been recognized, and the current share price is prepaying for continued perfection over the next two years.
The world's largest electronics manufacturing services (EMS) leader is being re-rated as AI servers, including roughly a 40% share in NVL72 racks, lift cloud and networking revenue above iPhone-related revenue for the first time. Yet gross margin is only 6% and net margin 2%, the profit pool sits with Nvidia rather than the assembler, PE-TTM is around 20x at a ten-year high, and the margin of safety is thin. Rating Hold: the ideal buy zone requires a pullback to below roughly TWD 220.
FII is the world's largest assembler of Nvidia GB200/GB300 NVL72 rack-scale AI servers, with an estimated 45-48% share. Earnings are genuinely accelerating, with FY25 revenue up 48%, net profit up 52%, and Q1'26 net profit up 102%, but the business remains low-margin contract manufacturing with weak pricing power. Rating Watch: a strong AI compute beta leader, but valuation, governance, and cycle risks leave the risk-reward unattractive at the current price.