Leadtek Research Inc (麗臺), a distributor of graphics cards, artificial intelligence (AI) workstations and AI servers, yesterday said that it expects revenue this quarter to decline from last quarter due to a seasonal slowdown before rebounding in the second quarter.
The company’s revenue last quarter fell 43 percent year-on-year to NT$927.97 million (US$29.34 million), but full-year revenue last year rose 3.78 percent annually to NT$4.45 billion, company data showed.
The first quarter is a low season for the electronics industry, as the Lunar New Year holiday results in fewer working days.
Photo: Fang Wei-chieh, Taipei Times
Leadtek’s first-quarter revenue over the past three years ranged from NT$774.09 million to NT$939.82 million, company data showed.
Revenue is expected to rebound in the second quarter, thanks to stabilized supply of Nvidia Corp’s RTX 50-series and RTX PRO 6000 graphics cards, a Leadtek source said by telephone.
Contributions from Nvidia’s AI workstations and servers are expected to continue growing this year and the company expects further revenue growth if China fully opens to Nvidia’s advanced H200 AI processors, said the source, who asked to remain anonymous.
China accounts for less than 80 percent of Leadtek’s total revenue, the source said, adding that the company aims to reduce the figure to about 50 percent this year.
A recent surge in memory prices has had limited effect on Leadtek, as consumer graphics cards account for a relatively small share of its revenue, they said.
That is because most of the memory chips used in the company’s products are GDDR — mainly for graphics cards — rather than DDR4 or DDR5 used in systems, which have borne the brunt of the price increases, the source said, adding that Leadtek would continue to pay close attention to memory price volatility.
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