TAIPEI (Taiwan News) — Pegatron said Wednesday it expects AI servers to remain its main growth driver and is targeting more than 10-fold server revenue growth this year
The electronics manufacturer said that its Q2 revenue rose 12.4% from the previous quarter and 2.7% from a year earlier to NT$274.44 billion (US$8.52 billion), per Anue. Net profit attributable to the parent company jumped 187.5% sequentially and 1,463.8% year-on-year to NT$4.48 billion, with earnings per share of NT$1.68.
First-half revenue fell 3.9% year-on-year to NT$518.55 billion, while gross margin rose 1 percentage point to 4.4%. Net profit increased 31.8% to NT$6.05 billion, with earnings per share of NT$2.26.
Pegatron said new server products, stronger customer demand, and higher shipments will drive computing revenue growth in the second half of the year, per CNA. The company expects server revenue growth to exceed its original target of more than 10-fold, while consumer electronics shipments should remain stable.
AI servers are expected to remain Pegatron’s main growth driver, with executives saying that the company will exceed its target. The company said it expects its server business to become one of its three largest business units and said its Nvidia GP300 server will remain in production through next year.
Pegatron added that it is building inventory ahead of continued supply constraints, particularly for AI servers and PCs. Memory and CPUs have been in tight supply for more than six months, while PCB materials and power components are facing shortages, per Liberty Times.
Pegatron said it has secured most of its CPU, memory, and SSD needs for the second half of the year. To support its expansion, the company said it has facilities in Taiwan, Mexico, and Texas, while also maintaining resources in Southeast Asia for flexibility.
