Giga-Byte Technology Co. posted record revenue driven by surging AI server demand, though currency volatility pressured margins during the quarter.
The Taiwan-based hardware manufacturer reported second-quarter revenue of NT$102.3 billion ($3.4 billion), jumping 38% year-over-year, while first-half sales reached NT$168.0 billion ($5.6 billion), up 30%. Both periods set new company records.
However, profitability faced headwinds. Second-quarter gross margin dropped to 9.42%, falling 3.47 percentage points from the previous quarter as inventory timing collided with sharp Taiwan dollar swings that created gaps between revenue and cost recognition.
The company expects margins to normalize after currency impacts stabilized in August. Giga-Byte plans more aggressive management of dollar-denominated positions to reduce future exchange rate risks.
Operating profit rose 37% to NT$5.3 billion ($176 million) in the quarter, while net income climbed 3% to NT$3.4 billion ($112 million). First-half net profit surged 26% to NT$6.8 billion ($225 million), marking the second-highest earnings period in company history behind only 2021’s pandemic boom.
Strong sales of high-end motherboards and graphics cards fueled growth, with momentum expected to continue. The company works closely with Nvidia Corp., Advanced Micro Devices Inc., and Intel Corp. as competition intensifies in the AI chip market.
Giga-Byte is expanding into emerging “Neo Cloud” markets while establishing assembly operations across Southeast Asia, the US, Brazil, and Europe to enhance supply chain flexibility.
