Gigabyte Technology Co (技嘉) yesterday reported that its net profit doubled in the first quarter, compared with the same period last year, on the back of strong server shipments.
Weak seasonal demand would affect the company’s sales of consumer electronics-related products such as notebook computers, motherboards and graphics cards this quarter, but continued artificial intelligence (AI) server shipments would support its overall business, Gigabyte said.
It is particularly positive about the second half of the year given consumers’ growing interest in AI products, replacement demand for PCs adopting the new Windows operating system, new product launches by global technology brands, and the sustained AI server growth momentum, Gigabyte said.
Photo by: Frederic J. Brown, AFP
Net profit rose to NT$2.07 billion (US$63 million) from NT$1.02 billion a year earlier in the January-to-March period, as revenue surged to NT$55.16 billion, the company said. That was a 96.8 percent increase from NT$28.03 billion the previous year, mainly due to a mild rise in motherboard sales and a rapid growth in its AI server business.
Earnings per share were NT$3.18, the highest in the past eight quarters, while gross margin fell by 1.35 percentage points to 11.3 percent and operating margin improved by 1.02 percentage points to 5.58 percent, it said.
Sales from servers accounted for 52.5 percent of Gigabyte’s total sales in the first quarter, followed by graphics cards at 27.7 percent, motherboards at 11.6 percent and laptops and other computer peripherals at 8.2 percent, Gigabyte said, adding that AI servers accounted for more than 70 percent of overall server business during the quarter.
Gigabyte said it is striving to provide a wider choice of product lines to meet client demand, with its top 20 customers contributing 80 percent of its overall revenue.
Its main customers are in the US, but has gained growing orders from European and Asia-Pacific regions, mainly cloud service providers, the company said.
Regarding its prospects for server business, Gigabyte said server shipments this year would mainly be those powered by Nvidia H100 and H200 chips.
As for server products adopting Nvidia’s new B100 and GB200 chips, the company would start volume production should it receive the US chip giant’s certification, it said.
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