WinWay Technology’s Earnings Outlook Improves as AI/HPC Testing Demand Ramps in 2H 2026: Nomura
Nomura reviewed WinWay Technology’s 2Q26 results, saying gross margin was 38%, below expectations, while strong July revenue indicated that AI/HPC projects will ramp significantly in the second half of 2026.
Nomura reviewed WinWay Technology’s 2Q26 results, saying gross margin was 38%, below expectations, while strong July revenue indicated that AI/HPC projects will ramp significantly in the second half of 2026.
The company has ample order backlog and continues to advance its capacity-expansion plans. Although gross margin is under short-term pressure, expectations for revenue growth and easing earnings pressure support the company’s long-term growth trajectory.
The market had been concerned about declining gross margin, but strong revenue guidance indicates that volume growth could offset margin pressure. Nomura’s conclusion was that near-term gross-margin pressure does not change WinWay’s long-term growth thesis and that rising AI/HPC order volumes will continue to drive upward earnings revisions.
The note was positive for WinWay Technology and the AI testing-equipment supply chain. While short-term gross margin came in below expectations, July revenue reflected accelerating orders, and expectations for an AI/HPC volume ramp in the second half of 2026 have not been fully priced in.
Key catalysts identified by Nomura are: the formal shipment schedule for AI/HPC projects in the second half of 2026; whether gross margin can recover as scale benefits emerge; and progress on capacity expansion and the addition of new customers.
The company has ample order backlog and continues to advance its capacity-expansion plans. Although gross margin is under short-term pressure, expectations for revenue growth and easing earnings pressure support the company’s long-term growth trajectory.
The market had been concerned about declining gross margin, but strong revenue guidance indicates that volume growth could offset margin pressure. Nomura’s conclusion was that near-term gross-margin pressure does not change WinWay’s long-term growth thesis and that rising AI/HPC order volumes will continue to drive upward earnings revisions.
The note was positive for WinWay Technology and the AI testing-equipment supply chain. While short-term gross margin came in below expectations, July revenue reflected accelerating orders, and expectations for an AI/HPC volume ramp in the second half of 2026 have not been fully priced in.
Key catalysts identified by Nomura are: the formal shipment schedule for AI/HPC projects in the second half of 2026; whether gross margin can recover as scale benefits emerge; and progress on capacity expansion and the addition of new customers.