Meritz Securities said on the 25th that ISU PETASYS, as a core value chain corporations for tensor processing units (TPUs), has secured a commanding market share and is expected to be re-rated. It kept a Buy rating and raised the target price 14.3% to 160,000 won. ISU PETASYS closed the previous transaction day at 125,100 won.
Meritz Securities said ISU PETASYS is at the center of the "TPU supercycle." With ISU PETASYS securing a dominant share within TPUs in the printed circuit board (PCB) institutional sector, it noted the company is set to enter a phase of "profitability and sales (P·Q) concurrent growth," in which both selling price (P) and shipment volume (Q) expand at the same time.
Meritz Securities analyzes that market expectations for next year's TPU shipments have turned to a trend of continuous upward revisions.
Yang Seung-su of Meritz Securities said it is "because Google's in-house AI services 'Gemini 3' and 'Nano Banana' are entering a high-growth phase, sharply increasing token usage." Recently, Google, in its earnings release, noted that the increase in capital expenditures (Capex) in 2026 will exceed this year.
In particular, it viewed as key that TPUs are expanding in earnest from internal use to sales to external customers.
Meritz Securities judged that the TPU ecosystem is at a turning point of great significance, shifting from in-house infrastructure to an expansionary platform.
It went on to say, "Following the recent contract to supply 1 million TPUs to Anthropic, demand is expected to rise stepwise as additional customers are secured."
Meritz Securities found that the volume of 7th-generation TPUs newly supplied by ISU PETASYS since on June has more than doubled from the plan at the start of the year.
Yang said, "Starting with the next-generation training TPUs to be released next year, multilayer boards (MLBs) will be applied, entering a phase of higher average selling prices (ASP), and further upward revisions to results are expected."