Jefferies has identified a lesser-known and potentially undervalued Taiwanese company poised to benefit from the growing artificial intelligence sector.
The investment bank said Insyde Software, listed on the Taipei Exchange, is well positioned to capitalize on the increasing demand for AI-enabled personal computers and servers.
Jefferies initiated coverage of Insyde with a research note titled "Firmware Leader and Yet-to-be Discovered AI Play" on July 9 with a "Buy" rating and a price target that suggests a potential 42% upside from current levels.
However, the stock has already risen by more than 30% since the ratings action, according to FactSet data, which shows the stock currently offers 17% upside potential.
Founded in 1998, Insyde has established itself in the firmware industry, commanding over 50% market share in the personal computer segment, Jefferies suggests.
Persons:
Jefferies, Insyde, Matt Ma, — CNBC's Michael Bloom
Organizations:
Interactive, Microsoft, Nvidia, Qualcomm, Intel, Dell, HP
Locations:
Taipei, Taiwan