ASUSTeK Computer signaled caution for the holiday quarter after posting record profits, highlighting uncertainties in PC market demand despite strong AI-driven growth.
The Taiwanese electronics maker expects PC revenue to drop 15% quarter-on-quarter in Q4, while projecting 20% year-over-year growth. The company’s October revenue fell 19.54% month-on-month to NT$49.932 billion (US$1.57 billion).
The company’s third-quarter net income climbed 12.68% to NT$12.504 billion (US$393 million), boosted by gaming laptops and AI-enabled products. Notably, AI servers now represent 80% of the company’s server business, which accounts for 10-12% of total revenue.
ASUS co-CEO Hu Shubin said shipments of servers with Nvidia’s H200 chips began in October, with plans to roll out GB200 servers in mass production by Q1 2025.
The company has captured over 25% of the global Copilot+ PC market since its mid-2023 launch. To strengthen its position in AI computing, ASUS is establishing a server production facility in the U.S., expected to begin operations by year-end.
Chinese market performance improved in Q3, driven by gaming sales and government consumption subsidies, according to CFO Wu Changrong.
