Taiwan-based cable manufacturer Bizlink Holding reported third-quarter earnings per share of NT$13.51 ($0.44), fueled by surging demand for high-speed interconnect solutions used in AI server infrastructure. The company’s gross margin climbed to 33.25% while operating margin reached 19.54%, both historical peaks.
The cable assembly maker’s nine-month cumulative earnings of NT$32.49 ($1.05) per share already exceed its full-year 2024 performance of NT$25.41 ($0.82), raising questions about whether current profit levels can be sustained as competition intensifies in the AI infrastructure space.
Bizlink cited higher shipment volumes of AI server cables and power interconnect products as key drivers. The company completed a $300 million convertible bond offering in late September to fund capacity expansion and pursue acquisitions.
The global AI server market is projected to grow rapidly through 2030, though hyperscale customers increasingly squeeze suppliers on pricing. Bizlink’s margins benefited from product mix shifts toward higher-specification cables, though analysts note that AI server suppliers typically face margin pressure below traditional server levels.
The company’s aggressive expansion strategy includes recent acquisitions in Slovakia and the United States, along with new manufacturing facilities in Taiwan and Indonesia. While this positions Bizlink to capture growing AI infrastructure spending, the capital-intensive buildout could strain returns if demand from cloud providers moderates.
