AI computing power explosion drives the demand for electrical infrastructure, BBU concept stocks surge strongly,抢占市场高地

Taiwan stock market fluctuates unpredictably, but a clear stream is quietly emerging—benefiting from the increased demand for power backup systems(BBU) driven by AI computing and data center construction. Shares of Kaboyu(3323), Xingnenggao(6558), and Xisheng(3625) all hit the daily limit-up today, with Kaboyu even firmly locked at NT$44.65, becoming the most eye-catching focus group in the recent market.

From optional to essential, why BBU has become a key infrastructure in data centers

When it comes to BBU( battery backup systems), many investors may feel unfamiliar. Simply put, it is an emergency power supply device with built-in batteries—when the main power is interrupted, the BBU can activate instantly, providing servers with precious seconds to minutes to save data or shut down safely. In the past, it was just an optional accessory for communication equipment, but now it has become an essential component for data center operations.

Behind this transformation are two powerful forces driving it: one is the explosive growth of AI and high-performance computing. Training and inference of large language models like ChatGPT and Gemini demand enormous computing power, and if these power-hungry AI servers experience power outages, the consequences could be disastrous. The second is the increased pressure on power grids caused by surging electricity consumption worldwide. As electricity prices rise and energy costs soar, grid stability faces unprecedented challenges. The dual functions of BBU—backup and energy storage regulation—elevate its strategic importance to the “new oil of the AI era.”

From a hardware perspective, high-end uninterruptible power supplies(UPS), energy storage modules, and BBU systems have become investment priorities for cloud service giants(CSP) like Google, Meta, Amazon, and data center operators. Later this year, NVIDIA(NVIDIA) is expected to hold an AI power summit, further signaling that the industry is actively working to solve the “power bottleneck,” and elevating BBU from a peripheral component to an indispensable infrastructure in server rooms and wafer fabs.

CSP clients have confirmed that Kaboyu and System Electric’s US-made strategic initiatives are about to bear fruit

Many companies have recently announced positive earnings forecasts, fueling market enthusiasm. Among them, the deep cooperation between Kaboyu and System Electric is particularly noteworthy—System Electric has acquired more than 10% of Kaboyu’s shares, jointly focusing on BBU and drone markets, with “US manufacturing of BBU” as a core strategy. System Electric also revealed during the earnings call that its BBU product validation is nearing completion, with the first CSP customer expected to start shipments in the first quarter of next year. Coupled with the mass production advantage of the Texas new factory, Kaboyu’s partners are likely to benefit from this wave of orders.

Xingnenggao is also making strides. The company emphasized during the earnings call that it is increasing the proportion of non-consumer, high-margin products, actively entering emerging fields such as BBU, energy storage, drones, and medical devices. Its BBU energy storage products used in network equipment have passed certification, and are expected to inject significant momentum into revenue and profit next year. Meanwhile, manufacturers like Shunda and Shenshengli are planning to expand BBU capacity to capture market share, with related revenue contributions expected to increase substantially next year. This explains why funds have recently started to position early.

Technical strength combined with clear industry trends suggests a continuation of short-term bullish momentum

Looking at capital flow, as the market has corrected from its highs and investors have become more cautious about high-valuation stocks, smart money has shifted toward groups with clear industry trends and relatively low stock prices. BBU concept stocks are a prime example—stocks under NT$50 leading the charge, driving the entire group with rising volume and prices, demonstrating strong resilience against declines. Take Kaboyu as an example: today, it broke through the quarterly moving average with a volume-driven long red candlestick, and the daily KD indicator showed a golden cross, indicating a clear technical shift to the bullish side, with ample momentum for further advances.

Analysts believe that in the context of the booming AI investment wave, the expansion of computing power will continue to accelerate. “Stable and sufficient power supply” has become an unavoidable supporting requirement, with a strategic importance comparable to “new oil.” Therefore, fields such as BBU systems, power management, and high-performance computing infrastructure have significant structural growth potential in the medium to long term. Related themes are expected to continue fermenting, and future trends are worth watching. Investors should closely monitor order confirmations and revenue realization as key indicators.