Quanta Computer Inc. delivered record quarterly earnings, fueled by robust demand for artificial intelligence servers, as the Taiwan-based electronics manufacturer strengthens its position in the AI infrastructure market.
The company reported third-quarter net income of NT$16.63 billion (US$520 million), marking a 29.9% jump from a year earlier and a 9.9% increase from the previous quarter. Nine-month profit reached NT$43.83 billion (US$1.37 billion), already surpassing full-year earnings from previous years.
Chief Financial Officer Yang Junlie projected AI server revenue will maintain its triple-digit growth rate next year, potentially accounting for more than 70% of total server sales, up from current 50%. However, he warned of near-term headwinds as the company transitions from Nvidia’s Hopper to Blackwell platform.
The shift to higher-priced AI products squeezed margins, with gross profit margin dropping to 7.33% from 8.58% in the second quarter. The company expects further margin pressure in the fourth quarter, coupled with a 10-15% decline in notebook shipments.
Quanta plans to roll out new AI servers featuring Nvidia’s GB200 NVL36 and NVL72 cabinet systems in early 2024, with initial Blackwell-based products shipping by year-end.
