Wistron Corp. expects artificial intelligence products to drive more than half of its revenue next year, up from over 40% currently, as demand for AI servers continues to surge.
The Taiwanese electronics manufacturer has already begun shipping GB200 server cabinets in the fourth quarter, with both cabinet and compute board volumes set to ramp up in early 2024, , Wistron’s Chairman and CSO Simon Lin said at an investor conference. The company’s AI-related revenue is projected to maintain triple-digit percentage growth next year.
Revenue for the first three quarters reached NT$752 billion ($23.8 billion), with AI products making a substantial contribution to growth. The firm has secured a major contract manufacturing deal with one of the world’s largest networking equipment makers, which is expected to multiply its networking business revenue next year.
While high-priced server cabinets will significantly boost sales, their lower margins compared to components may impact profitability. The company is expanding beyond its established high-end AI server business into mid and entry-level AI products to capture broader market share.
Wistron expects fourth-quarter gross margins to exceed third-quarter levels, capping what executives called a strong year for the company.
