Quanta Computer, a leading OEM manufacturer, announced impressive growth in its AI server segment during a press conference held on August 9th. Chief Financial Officer Elton Yang revealed that AI servers have exceeded expectations, achieving more than 50% of overall server revenue ahead of schedule. In the third quarter, non-PC revenue is expected to surpass 70%, with AI server revenue predicted to grow by a triple-digit percentage this year.
Yang noted that improved GPU supply in the second quarter bolstered AI server momentum, leading to higher-than-expected revenue contributions. This trend is expected to continue, with AI servers outperforming general-purpose servers in terms of growth. Major cloud service providers are increasing their investments in AI, enhancing project visibility and driving demand.
Despite market rumors about the postponement of Blackwell product shipments, Yang emphasized that customer demand remains strong, and Quanta’s business outlook is unaffected.
Looking ahead, Yang expects AI server shipments to impact gross profit margins and operating profit margins, potentially leading to a decline in gross profit margin in the third quarter.
Quanta has increased its capital expenditure plan for this year from 10 billion to 12 billion yuan, marking a 36.3% annual increase. This investment supports growing demand for automotive and server production capacity. Quanta is expanding production facilities in the United States, Thailand, Mexico, and Germany, with a new factory in Vietnam set to begin operations by the end of the year.
In the notebook segment, Quanta anticipates a slight revenue increase in the third quarter due to peak shipping season. AI PC shipments are expected to improve as Qualcomm, AMD, and Intel platforms and chips become available. While laptop shipments are projected to decline by a single-digit percentage this year, AI PCs are expected to drive a significant replacement wave in the future.
In the automotive sector, Quanta sees stable demand and improved visibility, targeting double-digit growth in automotive revenue for the year. The company is investing in advanced driver-assistance systems (ADAS) for both electric and traditional fuel vehicles.
Quanta’s board has approved the issuance of US$1 billion in overseas unsecured corporate bonds to support foreign currency purchases of materials. The bonds have a tentative five-year term and a 0% coupon rate, with the final issuance amount to be determined based on market conditions.
