Goldman Sachs has issued a research report expressing optimism about AAC TECH (02018), citing the expanding applications of edge AI devices in its component markets, including acoustic modules, MEMS microphones, and haptic feedback devices. These components are increasingly used in AI smartphones (e.g., Nubia M153), AI/AR glasses (e.g., Alibaba’s Quark S1), and innovative edge AI devices (e.g., OpenAI’s upcoming 2026 AI device). As a global leader in acoustics, AAC TECH holds significant advantages in compact, ultra-thin, lightweight speaker modules and low-power haptic feedback solutions, which are critical for enabling voice interactions in edge AI devices. Voice commands serve as a natural and efficient user-device interface, while also acting as a key input method for AI-generated content (e.g., summaries, translations, and searches). Goldman Sachs expects AAC TECH to benefit substantially from the growth of edge AI devices in the coming years, maintaining a Buy rating.
1. **"AI + Sensing" Solutions Empower AI Smartphones** In December 2025, ZTE and ByteDance’s Doubao jointly launched the AI smartphone prototype Nubia M153. Users can activate the AI assistant via voice or side buttons to perform tasks like food ordering and message replies, highlighting the growing importance of acoustic components in AI smartphones. As a leader in acoustics, AAC TECH provides solutions such as X-axis linear motors and dual speakers to enhance voice-based AI interactions. Additionally, AI smartphones’ increased computing power drives demand for thermal management, benefiting AAC TECH’s vapor chamber (VC) business.
2. **AI/AR Glasses with AI Assistant Capabilities** Voice commands are equally vital in AI/AR glasses. For instance, Alibaba’s new Quark S1 AI glasses employ a multi-microphone setup for voice interactions across scenarios. Miniaturization, ultra-thin designs, and low power consumption are critical for wearables, directly impacting comfort and battery life—key factors influencing daily usage. AAC TECH’s expertise allows it to deliver compact, low-power acoustic solutions without compromising performance. Beyond acoustics, Goldman Sachs foresees growth opportunities from increased camera counts and optical combiners (e.g., waveguides) in AR glasses.
3. **Innovative Edge AI Devices** Advancements in foundational AI models are spurring novel edge AI devices, further expanding AAC TECH’s addressable market. Goldman Sachs views voice interaction as a core feature of all edge AI devices due to its natural usability, benefiting AAC TECH’s acoustic and microphone segments. The company offers tailored solutions, such as 70dB high-fidelity, low-power microphones for AI interactions and "3-in-1" prism modules for enhanced visual signals. Notably, foundational AI model providers are developing edge-optimized versions (7B–20B parameters) to reduce latency and enable more AI features.
4. **Valuation** Goldman Sachs reiterates a Buy rating on AAC TECH with a 12-month target price of HK$68.6.