Following the U.S. Supreme Court's decision to overturn Trump-era IEEPA tariff policies and unprecedented AI data center construction led by tech giants like Google, Amazon, Meta, and Microsoft, demand for core power equipment and AI liquid cooling systems has surged. Delta Electronics Thailand Pcl, a leader in AI data center power infrastructure services and liquid cooling equipment, has become the first listed company in Thailand to achieve a market capitalization of $100 billion. The stock of Delta Electronics Thailand, a key participant in the AI computing power supply chain centered around NVIDIA's AI GPUs, surged as much as 10% on Monday. Approximately one-third of the company's revenue comes from the U.S. AI data center construction sector, contributing to a year-to-date stock increase of over 49%. Driven by exceptionally strong sales of core power equipment for AI data centers and robust demand for data center liquid cooling systems, the company's revenue grew significantly by 20% last year. Suwat Sinsadok, a senior analyst at Globlex Securities Co., stated, "Delta Electronics Thailand has very high earnings visibility, supported by its solid growth strategy and competitive AI data center power chain and liquid cooling product lines." He added that the company's net profit could increase by another 25% by 2027, reaching $1 billion. The stock surge since last year has made Delta Electronics Thailand Pcl the second-highest-valued listed company in Southeast Asia, trailing only the financial giant DBS Group, which surpassed the $100 billion market cap milestone last year. Delta Electronics Thailand Pcl's position in the "AI data center power chain + liquid cooling/thermal management equipment" segment is undoubtedly a critical component of AI computing infrastructure. The company recently unveiled its new-generation product lines, including data center liquid cooling CDUs. Combined with improved trade and demand expectations following the Supreme Court's tariff decision, these factors have driven a reassessment of the company's stock price and market value. What is Delta Electronics Thailand Pcl, and why has its market value surged to the $100 billion mark? The market capitalization of Delta Electronics Thailand Pcl, a listed subsidiary of Delta Electronics, Inc. established in Thailand, has skyrocketed by 60% in just one year, rising from about $62.6 billion a year ago to over $100 billion currently. Delta Electronics Thailand has become a "market cap monster" during this unprecedented AI infrastructure boom because it essentially provides indispensable elements for AI data center construction: power and thermal management. This includes high-efficiency power supply systems and thermal management solutions, extending to ICT infrastructure and some industrial/automotive power electronics. The company positions itself as a "leader in data center power equipment and thermal management solutions," with a product portfolio covering power electronics systems, data center power chains, and liquid cooling—some of the hottest global sectors. From the perspective of global AI server cluster projects, Delta benefits from two hard constraints: rising power density and cooling bottlenecks. As GPU/AI cabinets advance from tens of kilowatts to at least hundreds of kilowatts, hyperscale AI data centers require efficient power supply chains from grid to chip and liquid cooling systems with higher thermal flux. Delta emphasizes its role in providing power and thermal management solutions for the AI era, offering combinations of liquid and air cooling for high-density GPU/CPU workloads. The Open Compute Project has indicated that AI rack power will "soon exceed 500kW," while NVIDIA is advancing high-voltage direct current architectures for "AI factories," targeting rack scales from 100kW to over 1MW. Increasing power demands involve more than just purchasing additional components; they require complex stacking across the entire chain. This includes stricter efficiency and thermal design constraints for AC/DC and DC/DC converters, more complex multi-stage transformations from 48V to point-of-load voltages, and steeper transient currents for GPUs/CPUs. These factors significantly increase the demand and specifications for power stages, multi-phase controllers, hot-swap modules, isolation, current/voltage sensing, and high-speed signal conditioning. The capital market assigns higher valuation multiples to Delta because it is seen as a "picks-and-shovels" play on AI data center capital expenditures. For every new or expanded AI data center, power supplies, distribution, cooling, and rack-level liquid cooling are essential bill-of-materials items, with per-rack value rising alongside power density. Compared to pure assembly, these "critical components/systems" better demonstrate technological barriers and pricing power, aligning with the growth narrative of "data center demand driving strong power electronics sales." Additionally, following the Supreme Court's tariff ruling, expectations for demand for the company's core data center power chain equipment and AI liquid cooling systems have strengthened, propelling it to become Thailand's first company to surpass a $100 billion market cap.
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