Power supply and electronic components maker Delta Electronics Co (台達電) yesterday said it is optimistic about its revenue outlook this quarter, as major US hyperscalers continue to increase capital expenditure in artificial intelligence (AI) data centers, boosting demand for the company’s power supply and heat dissipation products.
The revenue outlook for the first quarter of next year is also positive, Delta Electronics chairman Ping Cheng (鄭平) told an investor conference in Taipei yesterday.
The company’s forecast is based on the consumption that hyperscalers would not slow down AI data investment in the short term.
Photo courtesy of Delta Electronics Co
Delta expects power supply unit shipments to grow quarterly this quarter, particularly those used in AI-related products.
Gross margin is expected to remain stable this quarter, thanks to improving product portfolios, the company said.
Delta on Wednesday reported record-high net profit for last quarter. Net profit last quarter rose 33.3 percent from a quarter earlier and 50.7 percent from a year earlier to NT$18.61 billion (US$605.9 million).
Earnings per share increased to NT$7.16, compared with NT$5.37 in the previous quarter and NT$4.75 a year earlier.
Gross margin fell to 34.87 percent last quarter from 35.5 percent in the second quarter, due to a broader product portfolio, as well as inventory and unfavorable exchange rates, Delta said.
Operating margin improved to 16.5 percent last quarter from 15.1 percent in the previous quarter.
Third-quarter revenue rose 21.1 percent quarter-on-quarter and 33.9 percent year-on-year to NT$150.32 billion.
During the first nine months, AI-related power supply units accounted for 23 percent of the company’s revenue, surpassing the 20 percent share estimated by the company earlier.
To mitigate capacity tightness, Delta said three new plants in Thailand would start operations by the end of this year.
Delta plans to spend NT$40 billion on new equipment and facilities this year, and plans to spend a similar amount next year.
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