Anticipated Stagnation in Leadtek's Revenues for the Remainder of the Current Year
Leadtek Braces for RTX PRO 6000 Series Graphics Card Shipments as Nvidia Faces Production Challenges
Taiwanese tech company Leadtek is gearing up for the delivery of products featuring Nvidia's RTX PRO 6000 series graphics cards, with shipments expected to commence next month. However, the company's revenue for the first half of 2023 has taken a hit, with a 6.2 percent decrease compared to the same period last year.
Leadtek, a long-term partner and an authorized reseller of Nvidia's products under its own brand, saw its revenue decline to NT$1.56 billion (US$51.9 million) in the first half of 2023. This drop is attributed to delayed shipments of Nvidia graphics cards, which only entered mass production last month and have experienced slowed shipments this month.
Graphics cards accounted for about 90 percent of Leadtek's sales last quarter, with virtual PC products contributing the remaining 8 percent. The company also produces AI workstations, servers, virtual desktop systems, and smart healthcare devices.
Despite the revenue decline, Leadtek expects no foreign exchange loss this quarter. This is due to the company's natural hedging strategy, which helped limit the impact of the sharp appreciation of the New Taiwan dollar against the US dollar, resulting in about NT$10 million to NT$20 million in foreign-exchange losses in the second quarter.
Leadtek purchases graphics cards from Nvidia in US dollars and receives payments in US dollars when selling the redesigned products to customers, partly offsetting exchange rate fluctuations. US tariffs on Leadtek's main products remain uncertain pending the outcome of a Section 232 investigation under the US Trade Expansion Act of 1962, but Leadtek expects little impact as US shipments are limited to virtual PC products and the market makes up only 7 percent of its sales.
Nvidia has faced some production challenges, such as with its Rubin GPU product line, but these delays were denied. As of mid-2025, no confirmed broad shipment delays for the RTX 50-series graphics cards, typically used for gaming and video editing, have been documented.
The overall graphics card market continues to suffer from high prices and supply chain constraints caused by pandemic and crypto booms, which could indirectly pressure Leadtek's sales. However, any shipment delays or supply shortages of RTX 50-series cards could materially affect Leadtek's revenue and future prospects, as the company relies heavily on Nvidia GPUs to build its products.
Leadtek is relying on products equipped with the RTX PRO 6000 series graphics cards, which have been verified by Nvidia. These graphics cards are primarily used for professional purposes, such as training AI models, inferencing ability, and producing medical images.
The eventual deliveries of Leadtek's products still depend on Nvidia's graphics card supply. A Leadtek official, who discussed the company's situation with the Taipei Times, requested anonymity. Despite the challenges, Leadtek remains optimistic about the potential of the RTX PRO 6000 series graphics cards and is looking forward to meeting the demands of its clients in the coming months.
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