Advantech’s Bookings Are Recovering, but Not a Big Beneficiary of Generative AI

We think Advantech’s dominant position in the IPC industry and reputation for providing reliable products and after-sales services give it a head start in offering next-generation industrial solutions, interconnected equipment and Internet of Things services. We believe Advantech’s two-pronged strategy of developing Internet of Things platforms and investing in Internet of Things service firms, reinforces its commitment to integrating hardware and services, differentiating itself from peers. Advantech’s revenue CAGR until 2028 is projected at 11%, with 70% of growth to come from Asia’s growing demand for robotics and industrial automation, 20% from potential new business in the U.S. and the remaining 10% from IoT offerings.