--- title: "Foreign capital is optimistic about the AI power revolution, Delta Electronics' Power Rack and SST dual engines are starting up" type: "News" locale: "en" url: "https://longbridge.com/en/news/292836673.md" description: "European brokerages are optimistic about the AI power revolution, raising Delta Electronics' target price to NT$2,750 and maintaining a \"buy\" rating. With the NVIDIA Rubin platform ramping up and the AI cabinet power supply architecture upgrading to Power Rack and high-voltage direct current, the penetration rate of power systems is increasing. Although the Q2 revenue forecast has been downgraded due to project delays, the long-term outlook for the AI cabinet power market's compound annual growth rate has been revised upward to 65%, with Delta Electronics positioned as a key beneficiary and a positive outlook" datetime: "2026-07-16T01:48:28.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292836673.md) - [en](https://longbridge.com/en/news/292836673.md) - [zh-HK](https://longbridge.com/zh-HK/news/292836673.md) --- # Foreign capital is optimistic about the AI power revolution, Delta Electronics' Power Rack and SST dual engines are starting up AI data centers continue to develop towards megawatt (MW) level cabinets. A recent report from European brokers indicates that with NVIDIA's Rubin platform starting to ramp up in the fourth quarter, and the continuous upgrade of AI cabinet power supply architecture, the penetration rate of new generation power systems such as Power Rack and high-voltage direct current (HVDC) is expected to continue to rise, driving the AI power market into a new wave of growth. The brokers pointed out that in the second quarter, some AI data center projects were delayed, and the delivery times for power semiconductors such as IGBT and MOSFET were extended, leading to a downward revision of Delta Electronics' revenue and profit estimates for the second quarter. However, the brokers believe that these factors are only short-term impacts, maintaining a "buy" rating and raising the target price from NT$2,600 to NT$2,750. At the same time, they revised the compound annual growth rate (CAGR) of NVIDIA's AI cabinet power market from 60% to 65% for the years 2025 to 2029. The brokers stated that the power supply architecture of AI data centers is undergoing significant changes. As the power of a single AI cabinet increases from tens of kW to hundreds of kW, and even approaches 1 MW, the traditional model of powering servers with built-in power supply units (PSUs) is gradually shifting towards the use of independent Power Racks, paired with 400 V and 800 V high-voltage direct current architecture to enhance overall power supply efficiency and power management capabilities. Since Power Racks integrate not only PSUs but also DC-DC power modules, backup batteries (BBUs), supercapacitors, and busbars, the proportion of the power system in the overall bill of materials (BOM) for AI cabinets continues to rise, making it an important beneficiary of the upgrades in AI data centers. In terms of power semiconductors, MOSFETs are key switching components in PSUs, DC-DC power modules, and Power Racks, responsible for quickly controlling current and achieving efficient power conversion and voltage regulation; IGBTs are mainly used in higher voltage and high power power conversion equipment. As the power of AI cabinets continues to rise, the number of power semiconductors required for each power system also increases, leading to longer delivery times for related components, which affects the shipment rhythm of AI power equipment in the second quarter. Regarding the product roadmap, the brokers expect the fourth quarter to see the ramp-up of the Rubin platform, while Rubin Ultra is more likely to adopt the upgraded Oberon NVL72 cabinet architecture, rather than the previously anticipated Kyber. The brokers believe that if Rubin Ultra continues with the Oberon NVL72 architecture, the short-term demand for independent Power Racks may be more moderate compared to the Kyber architecture, and the introduction of Power Racks will be gradual, with larger-scale power supply architecture upgrades expected to extend to the subsequent Feynman platform. In addition to AI power, the brokers are also optimistic about Delta Electronics' layout of next-generation distribution equipment. Among them, solid-state transformers (SST) are seen as an important technology for future AI data centers, capable of performing power conversion through high-frequency power semiconductors, integrating the functions of traditional transformers, rectifiers, and some distribution equipment Not only does it help reduce the size of the equipment, but it can also directly output high-voltage direct current, reducing the intermediate power conversion process and improving overall power distribution efficiency. Brokerages pointed out that Delta Electronics has currently provided a 2.5 MW SST design solution to Chinese cloud customers and plans to launch prototype machines ranging from 6 MW to 10 MW by 2027, targeting the U.S. and European markets. In addition, Delta Electronics recently announced the signing of a memorandum of cooperation with U.S. company X LABS, where both parties will jointly promote next-generation power distribution technology for AI data centers, accelerating the commercialization of SST; another new product, the solid oxide fuel cell (SOFC), is also planned to establish a trial production line of 30 MW to 50 MW by 2027, becoming a new growth momentum in the medium to long term. (Source of the first image: Delta Electronics) ### Further Reading: - Delta Electronics SST welcomes large-scale cooperation project, targeting 100 MW in the U.S. AI data center ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md) - [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md) - [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md) - [NVD.US](https://longbridge.com/en/quote/NVD.US.md) - [07388.HK](https://longbridge.com/en/quote/07388.HK.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md) - [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md) - [07788.HK](https://longbridge.com/en/quote/07788.HK.md) - [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md) - [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md) - [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md) - [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md) - [09388.HK](https://longbridge.com/en/quote/09388.HK.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [AI weekly: Nvidia does deal with Wall Street, China's AI weather forecasts](https://longbridge.com/en/news/295777975.md) - [Jensen Huang's latest pitch to investors: Nvidia's AI compute is its own asset class](https://longbridge.com/en/news/295562673.md) - [Nvidia just recruited Wall Street to help fund $500 billion in AI infrastructure. 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