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.
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