Key insights
- MPI's Q1 gross margin significantly exceeded Goldman Sachs' estimates, driven by strong MEMS probe card revenue. Goldman Sachs maintains a Buy rating and anticipates further upside from MEMS capacity expansion and new server applications. This positive surprise in the semiconductor supply chain, particularly in MEMS, could signal broader strength in the sector, indirectly benefiting US-listed semiconductor companies.
Investing.com -- MPI announced preliminary first quarter results on Wednesday, with gross margin reaching 59.4%, surpassing Goldman Sachs estimates of 54.3% and consensus expectations of 56.0%.
The gross margin increased 5.7 percentage points from the prior quarter, driven by higher revenue from the company’s VPC business, which includes MEMS products. Goldman Sachs estimates that MEMS probe cards represented more than half of VPC revenue in the first quarter, with MEMS probe cards carrying significantly higher gross margins than VPC solutions.
First quarter earnings per share came in at NT$12.5, exceeding expectations due to higher non-operating gains.
MPI is scheduled to host an analyst meeting on Friday. Goldman Sachs analysts expect discussion topics to include capacity expansion updates for MEMS, with potential upside into the fourth quarter supported by multiple MEMS projects entering mass production in the second half of 2026 and first half of 2027.
The company is also expected to address opportunities in server-related applications beyond AI ASIC, which could benefit from rising inference demand. Additionally, MPI is targeting EIC/PIC testing and die-level testing for CPO applications, with qualification updates anticipated at the meeting.
Goldman Sachs maintains a Buy rating on the stock.
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