Quanta Computer Inc. reported record first-quarter profits as AI server demand exceeded expectations, with operating margin reaching an all-time high of 5.07%. The Taiwan-based manufacturer posted net income of NT$19.5 billion (US$600 million), up 61.6% from a year earlier, as NVIDIA’s Hopper-architecture AI server shipments accelerated.
The company’s Chief Financial Officer Yang Jun-lye said both notebook and AI server businesses are showing strong momentum this quarter. AI servers could surpass 70% of total server revenue as NVIDIA GB200 shipments ramp up. However, he cautioned that profit margins might face pressure due to increased R&D investment for next-generation GB300 servers.
Notebook shipments totaled 10.8 million units in Q1, down just 2.7% quarter-on-quarter, significantly outperforming initial expectations of a double-digit decline. Quanta attributed this resilience to customers accelerating purchases amid uncertainties surrounding Trump administration tariff policies. The company expects notebook shipments to grow 7-9% in Q2.
Revenue jumped 87.6% year-on-year to NT$485.7 billion. Operating margin improved to 5.07%, up 1.44 percentage points quarter-on-quarter and 0.55 percentage points year-on-year. Q1 inventory rose to NT$277 billion from NT$261.8 billion in the previous quarter as the company secured components in advance to meet customer demand.
Regarding currency fluctuations, Quanta noted that most receivables and payables are denominated in US dollars, creating a natural hedge against Taiwan dollar volatility. The company’s stock rose over 5.5% to NT$276.5 following the announcement, with foreign investors purchasing more than 18,000 shares for the fourth consecutive day.
