FIT Hon Teng: Accelerating Data Center Content Drives Multi-Year Growth Visibility

The management commentary from the Asia AI Summit 2026 crystallizes a multi-year growth path driven by expanding dollar content per rack within NVIDIA’s ecosystem. Overall revenue guidance of low-teens growth in CY26, accelerating to the mid-to-high 20s in CY27-28, maps directly to a rising cloud/datacenter mix—targeted at mid-20s% of sales this year and low-30s% by CY28. The core mechanism is not merely unit volume but a structural upgrade in FIT’s rack-level power solutions when architectures migrate from Grace Blackwell (GB) to Vera Rubin (VR).

What Fuels the Revenue Acceleration The revenue trajectory is anchored in a rising datacenter mix, not a broad-based recovery. Low-teens growth in CY26 comes before the VR ramp meaningfully contributes; the subsequent leap to mid-to-high 20s growth in CY27-28 coincides with the mix shift toward VR. Datacenter mix expansion from mid-20s% to low-30s% over three years implies datacenter revenue grows materially faster than the corporate average, making it the dominant earnings driver.

The Power Content Doubling Mechanism The transition from GB to VR represents a step-change in FIT’s addressable content per rack. FIT’s role on GB is limited to in-tray power busbars, whereas on VR the company supplies rack-level power solutions. Management indicated the dollar content per rack could double. AI server revenue splits roughly evenly between data interconnect and power, with limited contribution from liquid cooling. Since shipment of these components precedes server rack assembly by 3-6 months, FIT’s revenue will lead the ramp, providing an early signal for the CY27 growth inflection.

Interconnect Upside with ELSFP and SOCAMM Beyond power, FIT is positioning for higher-margin interconnect revenue. The ELSFP external laser solution remains in qualification, with mass production timing unchanged at CY27. Once live, its gross margin should exceed corporate average. Separately, FIT was the first to produce the SOCAMM connector in collaboration with Samsung and is one of NVIDIA’s qualified suppliers, securing a role in next-generation memory interconnects. These products represent the 2027-and-beyond growth layer on top of rack power, but visibility hinges on customer certification.

Key Risks

1. ELSFP certification delay: Qualification timeline slipping past CY27 would defer a margin-accretive revenue stream. No interim milestones are public.
2. VR platform timeline dependency: The content doubling thesis assumes a timely VR ramp. Any NVIDIA platform transition delay directly hits the timing of FIT’s revenue acceleration.
3. Auto demand durability: Recovery in European auto brand volumes and pricing is noted, but auto remains a secondary contributor and cannot offset any datacenter delivery gaps.
4. Competitive creep: FIT’s rack-level power position faces established competitors. Sustaining share requires continued execution on cost and integration.

Investment Implications FIT has a clearly defined growth bridge to CY28: datacenter mix expansion funded by a power content upgrade that can double dollar capture per VR rack. The 3-6 month lead time on component shipments gives investors an observable leading indicator. The upside case lives beyond CY27, when ELSFP and SOCAMM add a margin-improvement layer. Until certification is secured, however, the near-term story rests purely on VR power execution—a high-visibility path that now markets verified guidance from management.