By Meryl Kao / Staff Reporter
Quanta Computer Inc (廣達) yesterday said artificial intelligence (AI) server revenue this quarter would continue to grow by a double-digit percentage sequentially, after server revenue last quarter increased by 30 percent quarter-on-quarter and accounted for 75 percent of total server revenue.Servers accounted for 80 percent of Quanta’s first-quarter revenue, which increased 66.6 percent year-on-year to NT$809.22 billion (US$25.68 billion), a record quarterly high, the company said.The company has become more optimistic about the AI server market compared with three months ago, as major cloud service providers now have clear order visibility through 2028, Quanta chief financial officer Elton Yang (楊俊烈) said at an earnings conference.
A Quanta Computer Inc sign is pictured outside the company’s headquarters in New Taipei City in an undated photograph.
Photo courtesy of Quanta Computer Inc
Quanta maintains a triple-digit growth forecast for AI server revenue this year, as some orders shift to “consignment” transactions from previous “buy-and-sell” arrangements, Yang said.High-priced AI server racks can significantly boost revenue, but weigh on margins under the buy-and-sell transactions, he said.
