Rising electricity prices have sparked BBU demand. Cabbage, Xingnenggao, and Xisheng three stocks are strongly pushing to the top, with major players taking early positions.

The Taiwan stock market today showed little fluctuation, but BBU (Battery Backup System) concept stocks reversed against the trend and became the focus. KABRY(3323), Hsing Neng Kao(6558), and Westwin(3625) all hit the daily limit-up, with KABRY closing at 44.65 yuan on high volume, fully demonstrating the market’s attention to this wave of themes.

Such market phenomena are driven by underlying logic: global electricity prices continue to rise, and the high power consumption characteristics of AI computing and data centers make “stable and uninterrupted power supply” a rigid requirement for data center operations. Against this background, power backup devices like BBU have evolved from peripheral optional components to essential infrastructure-level products.

Dual Drivers: Rising Electricity Prices and AI Computing Expansion

To understand why BBU concept stocks surged today, we need to grasp the combined effect of two forces.

First is the structural increase in electricity prices. As the global energy transition accelerates and grid loads increase, electricity costs have become a significant expense for data center operations. When electricity prices rise, any power outage causes losses multiplied many times over—one minute of power outage can cost cloud service giants (CSP) and semiconductor manufacturers millions. This directly elevates the investment priority for backup systems like BBU.

Second is the explosive growth in AI computing demand. NVIDIA(NVIDIA) is about to hold an AI power summit, which is expected to further highlight the industry’s active pursuit of solutions to “power bottlenecks.” High-end uninterruptible power supplies(UPS), energy storage systems, and BBU modules have become key investment areas for CSPs and data center operators. This demand has shifted from traditional communication applications to critical necessities ensuring continuous computing.

Two Major Strategic Alliances Open Shipment Windows

From individual stock developments, industry momentum is translating into tangible orders.

The strategic alliance between System Electric and KABRY has deepened: System Electric has acquired over 10% of KABRY, with both focusing on the “BBU manufacturing in the U.S.” strategy. During its earnings presentation, System Electric revealed that its BBU product validation is nearing completion, with the first cloud service provider client expected to start shipments in the first quarter of next year. Coupled with the mass production advantage of its new plant in Texas, operational momentum looks strong. This suggests KABRY is also poised to benefit from increased shipments.

Hsing Neng Kao emphasizes ongoing efforts to increase the proportion of non-consumer, high-margin products, actively deploying BBU, energy storage, drones, and medical applications. The company’s BBU energy storage products for network equipment have passed relevant certifications, and revenue and profit are expected to grow next year.

Additionally, ShundaShunda and Xin ShengliXSL are planning capacity expansions to meet market demand. Their related business revenue contributions are expected to significantly increase next year, attracting market funds to pre-position.

Technical Strengthening, Clear Medium-Long Term Trend

From the perspective of chips and technical analysis, this rally is more than just thematic speculation. Take KABRY as an example: its stock price broke through the seasonal line with a volume-driven long red candlestick, and the daily KD indicator showed a golden cross, indicating a clear short-term technical shift favoring the bulls.

Analysts point out that, under the premise that the big trend of AI investment remains unchanged, “stable and sufficient power supply” has become an indispensable key component, with a strategic position akin to “new oil.” Therefore, fields like BBU systems, power management, and high-performance computing infrastructure possess structural long-term growth potential.

Related themes are expected to continue fermenting, with a clear medium-long term outlook. Investors should closely monitor each company’s order fulfillment and revenue contribution progress as important indicators to determine whether this wave of themes is driven by actual performance growth or short-term speculation.