ASUS reported record profit for the first quarter as the Taiwanese tech giant capitalized on surging demand for AI servers and stronger PC sales, while also benefiting from the recovery of a significant bad debt provision.
Net income reached NT$12.79 billion ($426 million) in the three months through March, surging 135% from a year earlier and jumping 6.8 times compared to the previous quarter, the Taipei-based company said Monday at its investor conference. Earnings per share hit NT$17.2, exceeding analyst estimates.
The computer maker’s strong performance comes as the company successfully recovered NT$5.35 billion from an Indian server client that had delayed payments in the previous quarter. ASUS shares rose NT$5 to close at NT$608.
Revenue increased 18% year-on-year to NT$135.19 billion despite a 4% sequential decline, with gross margin improving to 15.5%. Operating margin jumped to 8.5%, up 7.8 percentage points from the previous quarter.
“Commercial PC performance was particularly strong with 30-40% revenue growth year-on-year,” Co-CEO Hu Shubin said, pointing to expanded demand across Asia-Pacific, North America and European markets.
The company’s server business posted double-digit growth as AI computing demand accelerates. NVIDIA’s latest RTX50 series graphics cards now account for over 50% of ASUS’s total graphics card shipments.
ASUS is positioning itself to capitalize on the edge AI trend with plans to launch its ultra-small AI computer, ASUS Ascent GX10, in the second half of 2025.
By region, Asia-Pacific generated 47% of revenue, while Europe contributed 31% and the Americas 22%.
