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.
Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights. The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights. Airlines are not waiting for a lack of supplies to react. “Travel alert: Airlines are cutting thousands of flights right now,” Travel Therapy host Karen Schaler said in an Instagram reel this past weekend.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled
RSS