Quanta Computer reported narrowing margins in the third quarter as the server manufacturer navigated a transition between AI product generations, with net income dipping 2.5% to NT$16.43 billion ($530 million). The company’s gross margin fell to 6.85% from 7.05% the previous quarter.
The muted results contrast with rival Wistron, which posted record quarterly profit of NT$7.41 billion on stronger order momentum. Wistron’s board approved spending up to NT$5.28 billion to expand its AI server facilities in Hsinchu, with its Malaysian unit separately planning a $30 million investment in worker housing and electrical infrastructure.
Quanta’s nine-month profit rose 20.4% year-over-year to NT$52.79 billion despite the quarterly softness. The company postponed its earnings call due to Typhoon Fenghuang, rescheduling alongside Foxconn and Wistron for Tuesday. Investors will scrutinize updates on Nvidia’s GB300 server platform, which manufacturers expect to drive shipments in the coming quarters.
The lackluster Q3 reflects what analysts describe as emergency stockpiling earlier this year driven by tariff concerns and geopolitical tensions, creating difficult comparisons. Laptop shipments remained flat year-over-year, offering little offset to the server transition drag.
Wistron shares gained 4.3% to NT$144.50 Monday, while Quanta closed unchanged at NT$291.50. Both companies’ fortunes increasingly hinge on capturing production share for high-margin AI infrastructure as traditional PC demand stagnates.
