Here, I would like to share a recent research summary that provides a perspective on the overall demand for PCBs through the lens of an overseas supply chain tracking. Previously, I also discussed with a friend from a related supply chain supplier in Thailand, and the outlook is quite optimistic.
From this, we can see that the demand for PCBs is indeed very strong. Let’s take a look at the previously mentioned summary:
We observe the market space
The above summary is for your reference. From this, we can clearly feel the high prosperity of the entire supply chain segment brought about by the continuous acceleration of AI. For instance, leading optical module companies have surpassed 200 billion, and the market space for PCBs is not smaller than that of optical modules. Moreover, the impact of technological iteration is relatively small due to the stronghold of the strong, where technology—stability—scale—price creates a strong technological barrier.However, there are some questions to ponder: has the leading PCB already reached its peak? It may still be at the bottom or halfway up, as the leading PCBs are in a state of supply not meeting demand, with both volume and price rising. Although stock prices have surged, the operating profits of these companies are also continuously increasing, indicating that there is no bubble in valuations.Given the high prosperity of the entire industry, can we also understand that the upstream equipment and consumables will continue to benefit from the large-scale expansion of PCB manufacturers? Therefore, based on this larger context, selecting the core equipment manufacturers that are also in a state of rising volume and price is essential. Similarly, copper foil also exhibits a leading effect.
Thus, based on continuous tracking of industry information, if you hold stocks that are certain to benefit, you will feel more secure and will not ask many short-term emotional questions, such as whether to sell during a pullback or if the stock price has risen too much. The essence is that companies can continuously create value and generate profits. The digestion of valuations will be swift.Recently, liquid cooling has also become very popular, but the changes in liquid cooling are quite numerous. Future chip iterations may require changing suppliers. Although it is also benefiting greatly and has risen well, determining how to ensure continued benefits in the future is a crucial question. Of course, those with positioning advantages may continue to benefit.