Nvidia’s earnings report got investors excited. The stock soared more than 29% in extended trading after reporting results on May 24 — building on the massive returns it has reaped from the artificial intelligence boom this year. It has risen 27% since Wednesday. Bank of America said in a May 25 note that Nvidia’s “optimistic outlook” in data centers and AI reiterated its positive view on the AI server hardware supply chain. The bank noted that several AI server-related stocks in Taiwan surged after Nvidia’s strong results. “Nevertheless, we see AI servers as one of the most reliable/obvious drivers of the hardware technology supply chain in Greater China,” Bank of America analysts wrote. They expect “highly customized” designs and specifications of AI servers and greater computing power to boost the value and selling prices of hardware suppliers from 2024 onwards. Stock Picks Bank of America maintained its “buy” ratings on these three Taiwanese tech stocks. Delta Electronics: Bank of America noted that the electronics maker still has upside if demand for servers or data centers is stronger than expected, or if global brands roll out electric vehicle-related products faster than expected. The bank has a price target of NT$365 ($11.90) on Delta, or about a 15 percent potential upside. Lite-On Tech: Bank of America likes the stock of this electronic components supplier, which makes products such as components for the semiconductor industry. This is due to growing demand for AI servers, their growing mix of sales from the cloud, and the “AI of Things” trend. It added that the company has a “solid” balance sheet and has maintained a high cash dividend payout of more than 70% since 2011. The bank has a target price of NT$95 for Lite-On, or about 10% potential upside. Quanta Computer: Quanta, which makes hardware but has expanded into AI applications and cloud computing, now has a better product mix and higher margins, Bank of America said. It also has a cash yield of up to 7%. It gave Quanta a target price of NT$125, or about 10% potential upside. — CNBC’s Michael Bloom contributed to this report.