Delta Electronics reported first-quarter net income of NT$10.23 billion (US$321 million), a 77.5% jump from the same period last year, as the company capitalizes on surging demand for cooling solutions in artificial intelligence servers.
The Taiwanese power management firm has successfully pivoted from a cooling electric vehicle market toward the booming AI sector, with Goldman Sachs projecting AI-related revenue could reach 20% of Delta’s total by 2025.
Chairman Ping Cheng highlighted AI as this year’s primary growth driver during an investor conference. Delta has expanded its AI power product development team from 800 to 1,000 members across five countries to meet increasing demand.
The company’s thermal management segment has seen particularly strong growth, with cooling solutions jumping from less than 1% of revenue last year to 6-7% in January. This surge follows NVIDIA’s adoption of liquid cooling technology for its GB200 AI servers.
First-quarter revenue reached NT$118.92 billion (US$3.74 billion), up 30.25% year-on-year. The company will hold an earnings call on April 30, where analysts expect questions about potential U.S. investment plans following the Trump administration’s recent tariff announcements.
While Delta remains optimistic about AI-related business, Cheng expressed caution regarding the electric vehicle segment, stating he “sees no obvious growth trend” and hopes merely to maintain current levels.
