AI cooling winner AVC and its subsidiary Fositek were searched by prosecutors and investigators at the same time — bad news for shareholders, though the companies stress that their core business has not been affected.

• Investigation Bureau officers went to AVC's Xinzhuang plant, where they searched and questioned specific employees. Both companies cooperated in accordance with the law.
• The focus of the investigation is matters related to Fositek's 2023 application for a stock listing, not its current business.
• Both companies say operations and finances will not be affected.
• AVC has been winning large orders in AI liquid cooling. September revenue rose more than 40% year on year and topped NT$20 billion in a single month for the first time; the third quarter also set a record, the ninth consecutive quarter at a new high.
• The timing of the news is sensitive: Taiwan's stock market swung at high levels today, less than 200 points short of the 50,000 mark, and foreign investors have been net sellers for two straight days.

Outlook: The share price may be choppy in the short term; what matters next is whether the investigation expands from individual employees to the company level.