Since April of last year, Delta Electronics' market capitalization has surged more than fourfold, propelling this AI server component manufacturer past Hon Hai Precision Industry (Foxconn), which had long held the position of Taiwan's second-largest listed company by market value. Delta now ranks as the second-largest company on the Taiwan stock exchange, trailing only Taiwan Semiconductor Manufacturing (TSM).
As of January 22, 2026, Delta Electronics' stock price hit the daily limit-up, closing at NT$1,245, driven by robust demand for AI data centers. This surge officially pushed its total market capitalization above the $100 billion mark, equivalent to approximately NT$3.23 trillion.
In September of last year, the company overtook chip design firm MediaTek. Then, earlier this month, it surpassed Hon Hai Precision Industry Co., Ltd.—the manufacturer also known as Foxconn, which produces iPhones and servers.
The core rationale behind Delta Electronics' soaring market value lies in the valuation reassessment of critical components within the AI server supply chain. Unlike Foxconn, which focuses more on assembly, Delta possesses significant technological barriers in areas like AI high-voltage direct current (HVDC) power management systems and liquid cooling technology. These advantages translate directly into higher gross margins and stronger profit expectations.
"AI servers have higher requirements for power and cooling, which puts Delta in a favorable position because it has always been a leading supplier in this field," stated Steven Tseng, an analyst at Bloomberg Intelligence. He noted that Delta enjoys high margins from its components business, while Hon Hai primarily concentrates on lower-margin assembly operations.
On the technology implementation front, Delta Electronics is deeply embedded in the supply chains of international tech giants such as NVIDIA. Its liquid cooling modules have demonstrated exceptional performance in managing the soaring thermal design power (TDP) of next-generation AI chips.
Multiple international financial institutions, including Citibank, have raised their target prices for the stock. They believe that as the adoption rate of liquid cooling systems in data centers rapidly increases, Delta Electronics' profit potential will expand further.
Meanwhile, MediaTek's stock price has recently rebounded, benefiting from its deep collaboration with Google in the AI chip sector.
The battle for the second spot in the Taiwan stock market is intensifying. Although Taiwan Semiconductor Manufacturing continues to hold the top position firmly with a market cap of $1.5 trillion, as stable as Mount Tai.
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