Delta Electronics Stock and 2 AI Infrastructure Plays for Data Center Growth

Malaysia’s electrical and electronics sector is back in focus after SERC lifted its 2026 GDP growth outlook to 5-5.2% on the back of stronger E&E exports and a 42.5% surge in E&E shipments in the first half of the year. At the same time, inflation is expected at 2.5-2.8% in 2026 and producer prices are rising, while political risk keeps overall sentiment cautious. That combination can reward investors who are selective. This article reviews 3 stocks from an E&E sector screener that appear positively exposed to these trends and outlines what to watch before making any decisions.

Accelink Technologies CoLtd (SZSE:002281)

Overview: Accelink Technologies CoLtd is a Wuhan based manufacturer of optoelectronic chips, devices, modules and subsystems that sit inside high speed telecom networks, data centers, enterprise networks and wireless access systems in China and overseas.

Operations: Accelink Technologies CoLtd generates virtually all of its CN¥12.5b in revenue from communication equipment manufacturing, alongside a small CN¥28.3m segment adjustment.

Market Cap: CN¥142.7b

Accelink Technologies CoLtd stands out in this E&E upcycle because its core optoelectronics business is closely tied to global data traffic growth and high bandwidth networks. Its earnings and revenue growth have recently outpaced both the China Electronic industry and wider market. Forecasts point to strong earnings expansion and a higher return on equity over the next three years. However, the stock already trades on a very high P/E and above some fair value estimates, which suggests expectations are demanding. Combined with a highly volatile share price and a balance sheet funded entirely by external borrowing, this results in a high growth story with clear execution and funding risks that investors should understand in detail before taking a view.

Accelink Technologies CoLtd’s rapid earnings momentum and rich P/E suggest the market expects a lot, but the real question is whether those expectations hold up under a full risks and rewards lens in the 2 key rewards and 1 important major warning sign

Delta Electronics (TWSE:2308)

Overview: Delta Electronics is a Taiwan based power and thermal management specialist that supplies critical components and integrated systems for data centers, electric vehicles, factory automation, buildings and energy infrastructure across major global markets.

Operations: Delta Electronics generates most of its NT$650.3b in revenue from the Power Supply and Spare Parts Business Group at NT$337.9b, followed by the Infrastructure Business Group at NT$226.2b, with smaller contributions from Automation, Transportation and segment adjustments.

Market Cap: NT$4,208.0b

Investors looking at Delta Electronics are seeing a company tightly linked to global E&E demand and AI data center build outs, while also exposed to EVs and factory automation. Recent results show sales and earnings that are supported by high quality margins and a business mix that benefits from rising power and cooling needs in AI infrastructure. At the same time, the stock carries a rich P/E multiple and relies heavily on external borrowing, so funding costs and sentiment shifts matter. There is also concentration of manufacturing in Asia and governance questions around board independence. Together, these factors create a powerful growth story with risks that are worth understanding in more depth.

Delta Electronics sits at the intersection of AI data centers, EVs and factory automation. The rich P/E and external borrowing story is only half the picture; the real insight sits inside the analyst forecasts for Delta Electronics

Yageo (TWSE:2327)

Overview: Yageo is a Taiwan based manufacturer of electronic components such as capacitors, resistors, inductors, antennas, sensors and power supplies that sit inside everything from consumer electronics and computing hardware to cars, industrial equipment, aerospace, defense and medical devices across global markets.

Operations: Yageo generates virtually all of its NT$140.0b in revenue from Electronic Components and Parts.

Market Cap: NT$1.16t

Yageo may be of interest if you want exposure to the core of the E&E supply chain as AI servers, EVs and high end industrial equipment steadily consume more passive components. Recent earnings growth of 28.6% and current analyst forecasts for both revenue and earnings to outpace the wider Taiwan market describe a company that is presently executing well, with improving margins and high quality earnings. At the same time, a relatively rich P/E, share price volatility and reliance on external borrowing sit alongside risks from industrial softness, inventory overhang and geopolitical friction. How those strengths and pressures balance out is an important consideration for Yageo’s next chapter.

Yageo’s 28.6% earnings growth and broad component footprint hint at a story that many investors may be underestimating. The real test is whether current expectations line up with the analyst forecasts for Yageo

The three stocks covered here are only a starting point, with the full Electrical & Electronics (E&E) Sector screener surfacing 44 more companies in the Electrical & Electronics sector that carry similarly detailed stories. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet strength and earnings narratives that matter to you so you can focus on your highest conviction ideas.

Take Control of Your Investment Journey

If Yageo or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond E&E?

Fresh ideas do not stay under the radar for long. Stock momentum can turn quickly once the crowd catches on. Review these focused lists while it matters and act now.

• Target resilient cash generators before they start flying by scanning the curated 248 high quality undervalued stocks that balance quality fundamentals with pricing that still looks reasonable.
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• Ride potential demand for smarter grids and backup systems by checking the focused 36 power grid technology and infrastructure stocks featuring businesses tied to grid upgrades and energy reliability.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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