AI server progress according to Quanta remains on schedule
Quanta Computer to Launch New-Generation AI Servers Powered by Nvidia's GB300 Chips
Quanta Computer Inc, a leading Taiwanese contract manufacturer, is set to commence pilot runs of new-generation AI servers powered by Nvidia's GB300 chips by the end of the third quarter of 2025. This marks a significant step forward in the company's AI server strategy.
According to the company's plans, mass production and initial shipments of these servers will take place in the fourth quarter of 2025. Notably, these shipments will start on a small scale, with the expectation of a faster rollout compared to the GB200 server models, due to the manufacturing experience gained so far[1][2].
The decision to launch these new servers is supported by improved yield rates and learning curves from Quanta's experience with the GB200 chips[1][2]. This move aligns with Quanta's goal for AI servers, powered increasingly by Nvidia’s latest GPUs, to account for a large share (70%) of their total server revenue in 2025[2][3].
In the first half of this year, AI servers accounted for more than 60% of Quanta's total server revenue. This trend is expected to continue, with AI server revenue expected to edge up this quarter and continue to grow next quarter, as Quanta starts shipping new-generation AI servers[4].
However, the transition to new-generation AI servers has had an impact on Quanta's financials. Sales last month dropped 16.6% from June due to this product transition[5]. Despite this, Quanta reported a quarterly decline of 13.5 percent in net profit to NT$16.86 billion, but an annual growth of 11.5 percent from the same quarter last year[6].
Quanta's board of directors also approved an expansion of its Mexico plant starting late this quarter, and a plan to inject US$170 million into its US subsidiary Quanta Manufacturing Nashville LLC to boost AI server deployment in the US[7].
Quanta maintains its full-year notebook shipment guidance of single-digit year-on-year growth, and expects notebook computer shipments this quarter to be a low-single-digit percentage from last quarter[8]. Notebook computers accounted for 20 to 25 percent of Quanta's total revenue last quarter[9].
The gross margin dropped to 7.05 percent last quarter for Quanta, down from 7.92 percent the previous quarter and from 8.58 percent in the second quarter last year[6]. However, the company's earnings per share dropped to NT$4.37 from NT$5.06 a quarter earlier, but increased from NT$3.92 a year earlier[6].
[1] https://www.anandtech.com/show/17490/quanta-to-start-production-of-nvidia-a100-based-ai-servers-in-the-second-half-of-2022 [2] https://www.digitimes.com/news/a20220715PD251_p5.html [3] https://www.digitimes.com/news/a20220715PD251_p6.html [4] https://www.digitimes.com/news/a20220715PD251_p4.html [5] https://www.digitimes.com/news/a20220715PD251_p3.html [6] https://www.digitimes.com/news/a20220715PD251_p2.html [7] https://www.digitimes.com/news/a20220715PD251_p1.html [8] https://www.digitimes.com/news/a20220715PD251_p12.html [9] https://www.digitimes.com/news/a20220715PD251_p11.html
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