Goldman Sachs Raises AVC Target Price on AI Liquid-Cooling Outlook

Goldman Sachs has raised its 12-month target price for AVC to NT$4,513 from NT$3,986 while reiterating a Buy rating. The bank also increased its financial estimates for 2026–2028, citing a larger contribution from liquid-cooling components used in AI servers.

The revised view is tied to expected demand growth for both air- and liquid-cooling components as customers move new ASIC server platforms into volume production and as AVC adds a new customer in the ASIC AI-server segment. Goldman Sachs expects the new customer to provide additional support for liquid-component shipments from the fourth quarter, although the year was not specified.

Goldman Sachs forecasts AVC’s monthly revenue to rise sequentially through December 2026. It projects quarter-on-quarter revenue growth of 18% in the third quarter of 2026 and 27% in the fourth quarter. The bank estimates a 39% compound annual growth rate in AVC net income over 2026–2028.

Underlying the cooling outlook, Goldman Sachs estimates shipments of NVL72-equivalent AI server racks, including Nvidia and AMD systems, at 55,000 units in 2026, 105,000 in 2027 and 163,000 in 2028. These estimates suggest a substantial expansion in the volume of dense AI infrastructure requiring thermal-management hardware.

For data-center infrastructure suppliers, the note reinforces the view that liquid cooling is becoming an increasingly important layer of AI deployment supply chains, extending from server-rack integration to specialised liquid components. The projected demand remains dependent on forecast AI infrastructure spending and projected server-rack shipments; it does not confirm contracted cooling volumes, actual AVC deliveries or commissioned data-center capacity.