MERITZ Securities evaluated on the 24th that ISU PETASYS will become the main character in the expansion of application-specific integrated circuits (ASICs). It maintained a 'Buy' investment opinion and raised the target stock price from the previous 62,000 won to 64,000 won. The stock price on the previous trading day was 45,600 won.
As the inference market expands, the demand for customized designs optimized for workload and expense structures among cloud corporations (CSPs) is increasing. Consequently, the introduction of ASICs is expected to accelerate as a strategic alternative to enhance negotiation power with NVIDIA.
Yang Seung-su, a researcher at MERITZ Securities, said, 'With the full-scale expansion of the ASIC market, ISU PETASYS's mid- to long-term growth drivers will be re-evaluated in earnest.' He noted, 'First, because ASICs have lower single-chip performance compared to graphics processing units (GPUs), high-speed routing designs at the printed circuit board (PCB) level are essential, and there is a tendency to use high-spec copper-clad laminates (CCLs) to secure thermal dissipation efficiency during the large-area design process.'
For this reason, it was also explained that the PCB content per single chip is observed to be increasing compared to GPUs.
Researcher Yang stated, 'ISU PETASYS currently maintains its position as the main supplier of PCBs for Company G's ASICs, and it is also participating in Company ME's ASIC project.' He added, 'In particular, the ASIC board for Company ME is similar in layer count and design structure to the board for 800G switches, so a leading position in that market with a high market share is expected to be secured.'
He continued, 'Following the operation of the new factory in the fourth quarter of this year, it is expected to supply in earnest to Company A,' and added, 'It is anticipated that benefits will arise from all three ASIC projects that are being mass-produced by early next year.'