Taiwanese server-parts maker Fuhsiang Technology (6805) sank more than 3% on short-term order jitters, but analysts say the long-term AI server story is still intact.

Fuhsiang's stock dropped after reports that some server projects got pushed back due to parts shortages, and Chinese phone customers turned cautious as memory chip prices rise. Analysts trimmed near-term revenue forecasts slightly but kept a "buy" rating and raised their price target, betting heavily on demand for AI servers and liquid-cooling connectors.

Elsewhere in Taiwan's tech sector, server maker Wiwynn posted blowout quarterly profit that beat its entire prior full-year earnings, sending its stock to the daily limit up. In the US, AMD and Supermicro both posted strong quarterly results, with AMD's CEO saying she expects the growth streak to continue for years, driven by AI chip demand.

Taiwan's broader stock market opened higher on relief from the US midterm elections and steadier US tech stocks, but the rally fizzled and the index briefly turned negative, coming a day after one of its worst point drops on record. Separately, a glitch at SinoPac Bank let unauthorized transfers of roughly $100,000 NT drain customer accounts overnight, triggering a panic before the bank froze the system and refunded the money.

Outlook: Expect Fuhsiang's near-term numbers to stay soft into next quarter, but watch AI server and liquid-cooling names for a rebound once component supply catches up.