Quanta Computer Inc (廣達), which supplies artificial intelligence (AI) servers powered by Nvidia Corp chips, yesterday said that AI servers are on track to account for 70 percent of its total server revenue this year, thanks to improved yield rates and a better learning curve for Nvidia’s GB300 chip-based servers.
AI servers accounted for more than 60 percent of its total server revenue in the first half of this year, Quanta chief financial officer Elton Yang (楊俊烈) told an online conference.
The company’s latest production learning curve of the AI servers powered by Nvidia’s GB200 chips has improved after overcoming key component supply constraints and improving yield rate, Quanta said.
Photo: CNA
Shipments of new-generation AI servers powered by Nvidia’s GB300 chips would undergo pilot runs by the end of this quarter, with small shipments to begin as early as the fourth quarter, Yang said.
Sales last month dropped 16.6 percent from June due to product transition as some major customers shifted orders to new-generation AI servers from the current generation, the company said.
AI server revenue would edge up this quarter from the previous quarter and continue to grow next quarter, as it starts shipping new-generation AI servers, Yang said.
Notebook computers accounted for 20 to 25 percent of total revenue last quarter, with shipments expected to be evenly split between the two halves of the year, Quanta said.
It expects notebook shipment growth this quarter to be a low-single-digit percentage from last quarter.
The firm maintained its full-year notebook shipment guidance of single-digit year-on-year growth.
Increasing demand for new-generation AI servers would continue weighing on gross margin, after gross margin dropped to 7.05 percent last quarter from 7.92 percent the previous quarter and from 8.58 percent in the second quarter last year, Quanta said.
Quanta reported a quarterly decline of 13.5 percent in net profit for last quarter to NT$16.86 billion (US$561.51 million) from NT$19.49 billion, but an annual growth of 11.5 percent from NT$15.12 billion.
Earnings per share dropped to NT$4.37 from NT$5.06 a quarter earlier, but increased from NT$3.92 a year earlier.
Separately, Quanta said its board of directors yesterday approved multiple plans, including an expansion of its Mexico plant starting late this quarter.
The upgraded factory is expected to restart production early next year.
The board also approved a plan to inject US$170 million into its US subsidiary Quanta Manufacturing Nashville LLC to boost AI server deployment in the US.
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