Quanta Computer Inc (廣達), which supplies artificial intelligence (AI) servers powered by Nvidia Corp technology, on Wednesday kept unchanged its AI-related business revenue growth forecast, adding that it expected it to grow significantly next year.
The company is on track to meet that goal, Quanta chief financial officer Elton Yang (楊俊烈) told an online conference.
AI server revenue already accounted for more than 70 percent of Quanta’s total server revenue in the first three quarters of this year, and is to account for more than 80 percent of its total server revenue next year, Yang said.
Photo: Bloomberg
Amid strong client demand, the company now has AI server order visibility through 2027, and expects its server production capacity to double, he said.
Shipments of its new-generation AI servers powered by Nvidia’s GB300 units are gradually entering the mass-production phase, and are expected to ramp up next year, he said.
Some major customers have shifted orders to new AI servers from the previous generation, Quanta said.
It has seen sequential growth in AI server revenue last quarter, thanks to the smooth transition.
Nvidia’s next-generation Vera Rubin platform is scheduled to enter mass production in the second half of next year, which is expected to further boost Quanta’s shipping momentum, Yang said.
Quanta is also working with customers to assemble AI servers powered by application-specific integrated circuits (ASIC), he said.
The company’s expects ASIC-based AI server shipments to double next year from this year, he added.
While shipments of general-purpose servers this quarter are expected to be lower than the previous quarter, AI server revenue is still expected to post double-digit percentage sequential growth on the back of strong demand, he said.
Shipments of general-purpose servers are expected to grow by a high double-digit percentage this year from last year, he said.
Server revenue accounted for about 70 percent of its total revenue last quarter.
Notebook computers are expected to account for less than 20 percent of revenue next year, with notebook shipment growth likely to align with overall industry trends, Quanta said.
Quanta expects a double-digit percentage sequential decline in notebook shipments this quarter.
Overall, net profit decreased 0.12 percent annually to NT$16.43 billion (US$528.62 million) from NT$16.63 billion, the company said.
On a quarterly basis, net profit also decreased 0.25 percent from NT$16.86 billion, it said.
Earnings per share shrank to NT$4.26 from NT$4.32 a year earlier and NT$4.37 in the second quarter.
Gross margin fell to 6.85 percent, down from 7.33 percent a year earlier and 7.05 percent in the previous quarter, attributable to sharp exchange rate fluctuations and geopolitical uncertainties.
With the rising share of AI server shipments, gross margin is expected to come under further pressure, Quanta said.
PERSISTENT RUMORS: Nvidia’s CEO said the firm is not in talks to sell AI chips to China, but he would welcome a change in US policy barring the activity Nvidia Corp CEO Jensen Huang (黃仁勳) said his company is not in discussions to sell its Blackwell artificial intelligence (AI) chips to Chinese firms, waving off speculation it is trying to engineer a return to the world’s largest semiconductor market. Huang, who arrived in Taiwan yesterday ahead of meetings with longtime partner Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), took the opportunity to clarify recent comments about the US-China AI race. The Nvidia head caused a stir in an interview this week with the Financial Times, in which he was quoted as saying “China will win” the AI race. Huang yesterday said
Japanese technology giant Softbank Group Corp said Tuesday it has sold its stake in Nvidia Corp, raising US$5.8 billion to pour into other investments. It also reported its profit nearly tripled in the first half of this fiscal year from a year earlier. Tokyo-based Softbank said it sold the stake in Silicon Vally-based Nvidia last month, a move that reflects its shift in focus to OpenAI, owner of the artificial intelligence (AI) chatbot ChatGPT. Softbank reported its profit in the April-to-September period soared to about 2.5 trillion yen (about US$13 billion). Its sales for the six month period rose 7.7 percent year-on-year
MORE WEIGHT: The national weighting was raised in one index while holding steady in two others, while several companies rose or fell in prominence MSCI Inc, a global index provider, has raised Taiwan’s weighting in one of its major indices and left the country’s weighting unchanged in two other indices after a regular index review. In a statement released on Thursday, MSCI said it has upgraded Taiwan’s weighting in the MSCI All-Country World Index by 0.02 percentage points to 2.25 percent, while maintaining the weighting in the MSCI Emerging Markets Index, the most closely watched by foreign institutional investors, at 20.46 percent. Additionally, the index provider has left Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index unchanged at 23.15 percent. The latest index adjustments are to
CRESTING WAVE: Companies are still buying in, but the shivers in the market could be the first signs that the AI wave has peaked and the collapse is upon the world Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported a new monthly record of NT$367.47 billion (US$11.85 billion) in consolidated sales for last month thanks to global demand for artificial intelligence (AI) applications. Last month’s figure represented 16.9 percent annual growth, the slowest pace since February last year. On a monthly basis, sales rose 11 percent. Cumulative sales in the first 10 months of the year grew 33.8 percent year-on-year to NT$3.13 trillion, a record for the same period in the company’s history. However, the slowing growth in monthly sales last month highlights uncertainty over the sustainability of the AI boom even as
RSS