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2395: New Edge AI Alliances Will Drive Long Term Market Leadership

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-20.6%
7D
-2.4%

Analysts have modestly raised their price target on Advantech, citing a slightly higher assumed future price-to-earnings multiple and stable long-term growth and margin forecasts that together support a valuation now hovering around $358 per share.

What's in the News

  • Announced a collaboration with D3 Embedded to integrate Advantech AFE R360/R760 platforms with advanced GMSL2 camera systems, enhancing AI powered vision and object recognition for autonomous mobile robots in manufacturing, warehouse, and retail settings (client announcement).
  • Formed a strategic collaboration with Qualcomm Technologies and Edge Impulse to build an edge AI ecosystem around the Dragonwing IQ 9075 processor, powering new AIR 055 and AFE A503 platforms for vision AI, robotics, and AMR deployments (strategic alliance).
  • Introduced a new portfolio of NVIDIA Jetson Thor based edge AI solutions targeting robotics, medical AI, and data AI, including specialized robotic controllers, surgical robotics systems, and multi camera traffic and factory analytics platforms (product announcement).
  • Launched the AOM 5721 SMARC Arm module based on Qualcomm Dragonwing QCS6490, delivering 12 TOPS edge AI performance, four camera support, and multi OS flexibility for industrial, commercial, and medical applications (product announcement).
  • Issued fourth quarter 2025 revenue guidance of USD 550 million to USD 570 million, reinforcing expectations of steady top line growth in its core industrial and edge computing markets (corporate guidance).

Valuation Changes

  • Fair Value Estimate remains unchanged at approximately $357.60 per share, indicating no material revision to the intrinsic value assessment.
  • The Discount Rate has risen slightly from 6.62 percent to about 6.63 percent, reflecting a marginally higher required return in the valuation model.
  • Revenue Growth is effectively unchanged at around 10.84 percent, signaling stable expectations for Advantech’s long term top line expansion.
  • Net Profit Margin is effectively unchanged at roughly 16.29 percent, indicating steady assumptions on long term profitability.
  • The Future P/E has risen slightly from about 24.55x to 24.55x, supporting a modestly higher valuation multiple on future earnings.

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