King Slide shares gap up after NT$51 ex-dividend adjustment

King Slide Works (2059.TW), a leading AI server rail manufacturer, traded ex-dividend on the 27th, paying NT$51 per share against an ex-dividend reference price of NT$14,459. Shares opened at NT$14,815 after Nvidia’s earnings beat, completing the dividend adjustment before retreating toward the flat line. Based on the pre-dividend close of NT$14,510, the cash dividend represents a yield of about 0.35%. King Slide’s first-seven-month consolidated revenue rose 136.58% year-over-year to NT$22.69 billion, or approximately $715.0 million, while first-half EPS reached NT$110.96. Institutional investors have lifted full-year EPS estimates above NT$300 and see next year’s figure potentially exceeding NT$500. New AI server products, cloud service provider demand and higher-density hardware are expected to accelerate second-half revenue, although the transition to Nvidia’s Vera Rubin platform could cause short-term monthly volatility. Nvidia reported fiscal 2027 second-quarter revenue of $96.22 billion, up 106% year-over-year, and guided for fiscal third-quarter revenue of $108 billion, plus or minus 2%. Its data center revenue reached $89 billion, accounting for more than 90% of total revenue. Amazon Web Services will purchase 2 million Nvidia GPUs incorporating Vera CPUs. King Slide’s latest quarterly gross margin reached 87%, compared with 68% for TSMC and about 75% for Nvidia, while its high-end server rail market share is approximately 80%. Competition is nevertheless increasing, with Daiwa Securities forecasting that King Slide’s share of Nvidia-related rail orders could fall to about 75% next year. The company plans to accelerate its Chuanyi Phase III and Phase V investment projects in the fourth quarter, and is expected to retain strong growth momentum in 2027.

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