TLDR: JPMorgan has initiated ‘Overweight’ coverage on Delta Electronics (Thailand), projecting substantial sales and earnings growth through FY2027, fueled by the surging demand for power solutions in AI servers and data centers. The company, a key player in the electronics sector, is expected to benefit from sustained investments by cloud service providers and its expansion into liquid cooling solutions.
JPMorgan has launched ‘Overweight’ coverage on Delta Electronics (Thailand) Public Company Limited (SET: DELTA), setting a December 2026 price target of THB 154 per share. This bullish outlook is primarily driven by Delta’s strategic position and unique exposure to the escalating demand for power solutions within the rapidly expanding data center and artificial intelligence (AI) server markets. As the largest listed electronics company in the region and a leading provider of power solutions for both data centers and electric vehicles, Delta Electronics is well-positioned to capitalize on robust and sustained growth across these critical industries.
Analysts at JPMorgan project impressive revenue growth for Delta, forecasting increases of 9% in FY2025, 18% in FY2026, and 12% in FY2027. This optimistic forecast is underpinned by anticipated sustained investments from cloud service providers (CSPs) and the ongoing momentum in AI-driven spending. Furthermore, DELTA’s earnings are expected to accelerate significantly, achieving a compound annual growth rate (CAGR) of 23% from FY2025 to FY2027. The company’s margins are also projected to improve notably as it expands its offerings into advanced liquid cooling solutions, a critical technology for high-density AI infrastructure, starting in 2026.
Also Read:
- Nvidia’s 800V Power Architecture Drives Gallium Nitride Adoption, Boosting Micro Silicon’s Testing Business
- Thailand Unveils US$770 Million Investment to Propel National AI Development
JPMorgan justifies DELTA’s premium valuation by highlighting its ‘scarcity value’ as the sole direct listed proxy on the Thai bourse for global data center and AI server growth trends. The firm’s substantial market capitalization and industry relevance further solidify its anchor role within major Thai equity benchmarks, including the SET50 and SET100 indices.
