Quanta Computer Inc (廣達電腦), one of the world’s leading contract notebook computer makers, yesterday reported an 86.4 percent annual increase in net profit for the first quarter despite weak seasonality for technology products during the period.
The firm — an assembler of Apple Inc’s MacBooks — also manufactures non-notebook products such as automotive electronics and cloud-based solutions for global brands, and is ramping up production of artificial intelligence (AI) servers to meet growing demand.
Quanta said net profit for the first quarter rose to NT$12.07 billion (US$373.5 million) from NT$6.47 billion in the same period last year.
Photo courtesy of Quanta Computer Inc
On a quarterly basis, net profit increased 17.4 percent from NT$10.28 billion, the company said in an earnings report.
Earnings per share were NT$3.13, compared with NT$1.68 a year earlier and NT$2.67 the previous quarter, it said.
While the company’s revenue in the first quarter fell 2.7 percent year-on-year and 10.1 percent quarter-on-quarter to NT$258.94 billion due to seasonal weakness, its earnings beat market expectations and reached the highest first-quarter level ever thanks to a better product mix, especially AI-related products, and foreign exchange gains.
In addition, Quanta’s gross margin hit 8.48 percent and its operating margin climbed to 4.52 percent in the first three months, also new highs for the first quarter in the company’s history.
Yuanta Securities Investment Consulting Co (元大投顧) had estimated earnings per share of NT$2.6 and revenue of NT$251.85 billion, while forecasting gross margin of 8.02 percent and operating margin of 4.25 percent.
“We still expect the AI trend to be the firm’s main sales driver going forward, especially US cloud service providers’ strong AI server demand,” Yuanta said in a note ahead of the release of Quanta’s earnings data. “Additionally, Quanta is developing GB200 server projects, which should also drive shipments should client demand grow.”
The GB200 projects refer to AI servers powered by Nvidia Corp’s GB200 flagship chips.
With Quanta’s AI servers likely to show strong shipments from this month or next month on easing of AI GPU supply tightness, the firm’s server sales are forecast to grow more than 60 percent this year and expand another 40 percent next year, Yuanta said.
The notebook computer business accounted for up to 35 percent of the firm’s total revenue in the first quarter, while non-notebook computer business including automotive electronics and servers made up the remaining 65 percent.
Quanta shipped 10.5 million notebooks in the quarter, up 1 percent from the previous quarter and beating its earlier guidance of a sequential decline of 7 to 9 percent. Still, notebook shipments fell 2.8 percent from a year earlier, the firm said.
Quanta’s board of directors has proposed a cash dividend of NT$9 per share given the firm’s earnings per share of NT$10.29 last year, which represents a payout ratio of 87.5 percent.
The dividend distribution is subject to the final approval of shareholders at the company’s annual general meeting scheduled for June 14.
Semiconductor business between Taiwan and the US is a “win-win” model for both sides given the high level of complementarity, the government said yesterday responding to tariff threats from US President Donald Trump. Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia Corp. Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel in an effort to get the producers to make them in the US. “Taiwan and the US semiconductor and other technology industries
SMALL AND EFFICIENT: The Chinese AI app’s initial success has spurred worries in the US that its tech giants’ massive AI spending needs re-evaluation, a market strategist said Chinese artificial intelligence (AI) start-up DeepSeek’s (深度求索) eponymous AI assistant rocketed to the top of Apple Inc’s iPhone download charts, stirring doubts in Silicon Valley about the strength of the US’ technological dominance. The app’s underlying AI model is widely seen as competitive with OpenAI and Meta Platforms Inc’s latest. Its claim that it cost much less to train and develop triggered share moves across Asia’s supply chain. Chinese tech firms linked to DeepSeek, such as Iflytek Co (科大訊飛), surged yesterday, while chipmaking tool makers like Advantest Corp slumped on the potential threat to demand for Nvidia Corp’s AI accelerators. US stock
The US Federal Reserve is expected to announce a pause in rate cuts on Wednesday, as policymakers look to continue tackling inflation under close and vocal scrutiny from US President Donald Trump. The Fed cut its key lending rate by a full percentage point in the final four months of last year and indicated it would move more cautiously going forward amid an uptick in inflation away from its long-term target of 2 percent. “I think they will do nothing, and I think they should do nothing,” Federal Reserve Bank of St Louis former president Jim Bullard said. “I think the
SUBSIDIES: The nominee for commerce secretary indicated the Trump administration wants to put its stamp on the plan, but not unravel it entirely US President Donald Trump’s pick to lead the agency in charge of a US$52 billion semiconductor subsidy program declined to give it unqualified support, raising questions about the disbursement of funds to companies like Intel Corp and Taiwan Semiconductor Manufacturing Co (台積電). “I can’t say that I can honor something I haven’t read,” Howard Lutnick, Trump’s nominee for commerce secretary, said of the binding CHIPS and Science Act awards in a confirmation hearing on Wednesday. “To the extent monies have been disbursed, I would commit to rigorously enforcing documents that have been signed by those companies to make sure we get
RSS