By Meryl Kao / Staff Reporter
Leadtek Research Inc (麗臺), a distributor of graphics cards, artificial intelligence (AI) workstations and AI servers, yesterday said revenue this quarter is expected to be flat or slightly up from last quarter, driven by robust demand and easing supply constraints.Revenue last quarter increased 69.1 percent quarter-on-quarter and 91.29 percent year-on-year to NT$1.57 billion (US$49.8 million), thanks to stabilized supply of Nvidia Corp’s RTX 50-series and RTX PRO 6000 graphics cards, a Leadtek source said in an interview.Leadtek is a long-term partner of Nvidia and an authorized reseller of the US chipmaker’s products.
The Leadtek Research Inc logo is pictured at a computer trade show in Taipei in an undated photograph.
While Nvidia has raised prices by about 20 percent across its entire product lineup, demand for AI-related graphics processing units (GPUs) remains strong in the gaming and enterprise markets, the source said.Leadtek earlier this month reported first-quarter net profit of NT$107.79 million, surging 270 percent quarter-on-quarter and more than quadrupling year-on-year, driven by strong demand for high-end AI GPU products.
Earnings per share rebounded to NT$1.15 from NT$0.34 in the previous quarter and NT$0.24 a year earlier.Gross margin rose to 10.65 percent from 10.44 percent in the previous quarter, but declined from 21.03 percent a year earlier.China remains the company’s biggest market, accounting for about 70 percent of its NT$4.44 billion in revenue last year. This year, the company would consider lowering the revenue share of China while accelerating expansion in Vietnam, Japan, South Korea and especially Thailand, the source said.However, any easing of restrictions on Nvidia’s AI chips in China would serve as a positive growth driver for Leadtek, the source said.“If the market is reopened, private-sector demand would definitely be very strong,” they said.The US has cleared about 10 Chinese firms to purchase Nvidia’s H200 AI chips, but no deliveries have been made so far, leaving the technology deal in limbo, Reuters reported on Thursday last week.If the H200 chips were fully reopened to the Chinese market, Leadtek’s China revenue this year could double from last year’s level, the source said.Many Chinese clients remain in the inquiry stage and are holding off from placing large advance orders due to policy restrictions and inventory risks, they added.
