FADU gains more than 9% on expectations of benefiting from Meta Platforms' AI agent 'Muse' [Stock NOW]

[Financial News] FADU is trading higher in early trading on expectations that it will benefit from the success of Meta Platforms' AI agent 'Muse.'
At 9:32 a.m. on the 23rd, FADU was trading at 79,400 won, up 7,100 won, or 9.82%, from the previous trading day. The stock opened at 75,700 won and climbed as high as 84,300 won during the session.
FADU supplies Meta Platforms with components such as enterprise solid-state drive (eSSD) controllers for AI applications. The stock is believed to be reflecting expectations that FADU's supply volume will increase as Meta Platforms' AI business grows and its capital expenditures expand, fueled by Muse's popularity.
Expectations for improved earnings are also growing. Third-quarter revenue is projected to rise 376% year on year to 122.1 billion won, while operating profit is expected to turn positive at 35.5 billion won. The projected operating profit is above the market estimate of 32.1 billion won. Analysts say growth will be driven by the expansion of major data center customers and increased controller shipments.
Injun Son, an analyst at Eugene Investment & Securities, said, "FADU is expected to maintain its high controller share at the customer and directly benefit from increased capital expenditures driven by AI business growth. Reflecting an upward revision to the eSSD demand outlook and increased AI capital expenditures by end customers, we are raising our target price from 100,000 won to 110,000 won."   

[email protected] Bae Han-geul Reporter