Goldman Sachs points out that artificial intelligence infrastructure construction is driving the PCB (printed circuit board) and CCL (copper-clad laminate) industry into a super-cycle. The firm believes that with the continuous upgrade of AI server specifications, the industry is experiencing dual drivers of "higher speeds" and "larger scale," which will significantly enhance the value content and market space for related components.
According to Zhui Feng Trading Desk, a report released by Goldman Sachs on January 20th predicts that the global market size for AI server PCBs will increase by 113% year-over-year in 2026 and continue to grow by 117% in 2027. The growth rate for the upstream core material, the AI server CCL market, is even more astonishing, with forecasts of 142% and 222% year-over-year growth in 2026 and 2027, respectively. This explosive growth is attributed to increasing compute density, surging demand for high-speed connectivity (such as 800G/1.6T), and the trend of PCBs gradually replacing copper cable connections inside AI servers.
Goldman Sachs refutes market concerns that "AI infrastructure has passed the initial stage and competition will intensify." The firm argues that rapid technological iteration (such as the shift to M9 grade materials and higher-layer boards) creates extremely high R&D and capital expenditure barriers, allowing leading companies to maintain a relatively benign competitive environment and continuously secure order share from major customers. Goldman Sachs initiated coverage on Shengyi Technology, Wus Printed Circuit Co., Ltd., and Victory Giant Technology with "Buy" ratings.
Dual Drivers: Speed Upgrades and Volume Scaling The core logic of the Goldman Sachs report is built on two major trends. The first is the increase in value content driven by speed upgrades. As AI server specifications advance, the compute density per rack increases substantially, fueling demand for high-speed connectivity technologies like 800G and 1.6T. This directly leads to a significant increase in the dollar content of PCBs and CCLs.
The second is the scale effect. The continuous volume expansion of AI servers is enlarging the total addressable market (TAM), with supplier capacity expansion following closely behind. Goldman Sachs specifically notes that the application of PCBs in AI servers is increasing; for example, in rack-level servers, PCB backplanes and midplanes are replacing traditional copper cable connections because the PCB solution is easier to assemble, providing additional incremental space for the industry.
Market Forecast: CCL Growth Leads the Industry Chain According to Goldman Sachs' calculation model, the growth rate of PCBs and CCLs across various segments of the AI data center will be exceptionally bright. Report data indicates that the global AI server PCB market size is expected to grow from approximately $3.1 billion in 2024 to $27.1 billion in 2027.
In contrast, the upstream material CCL shows greater elasticity. Goldman Sachs expects the global AI server CCL market to surge from $1.5 billion in 2024 to $18.7 billion in 2027. Comparing growth rates, the market growth for CCL in 2026 and 2027 (142%/222%) is even higher than the growth forecasts for optical modules (107%/48%) and AI training servers (57%/37%) during the same period.
Investment View: Technology Barriers Protect, Competitive Landscape Better Than Expected Addressing the risks of "slowing market growth" and "intensifying competition" commonly concerning investors, Goldman Sachs presents a clear counter-argument in its report. The Goldman Sachs analyst team, led by Allen Chang, believes that with the rapid migration of AI server specifications, customers are more inclined to rely on technology leaders to ensure product quality and timely delivery of the latest architectures.
The report points out that developing and producing the latest generation of PCBs and CCLs required for AI servers necessitates not only extremely high R&D investment but also faces significant capital expenditure burdens, which will effectively limit the number of new entrants. Therefore, against the backdrop of rapid technological iteration, the market competition environment will be more moderate than investors expect, and leading companies will continue to benefit. Goldman Sachs initiated coverage on Shengyi Technology, Wus Printed Circuit Co., Ltd., and Victory Giant Technology with "Buy" ratings.