AI server development, according to Quanta, remains on schedule
Quanta Computer Inc, a leading manufacturer of computers and servers, has announced its plans to begin trial production of AI servers powered by Nvidia's GB300 chips in late Q3 2025. This marks a significant step forward in the company's efforts to capitalise on the growing demand for AI servers.
According to the company's latest statement, small shipments and pilot runs of these new-generation AI servers are scheduled to be completed by the end of Q3, allowing for initial shipments as early as the fourth quarter of 2025. This timeline is based on Quanta's prior experience with Nvidia’s GB200 server production and the rising demand for AI servers with GB300 chips, which are expected to constitute a large portion of Quanta’s overall server revenue in 2025.
Nvidia’s broader GB300 production strategy targets mass shipments starting September 2025, which aligns well with Quanta's manufacturing and shipment plans. The company benefits from a strong ecosystem relationship with Nvidia and major cloud customers, supporting a rapid transition to GB300 server generation.
In other news, Quanta's latest production learning curve of AI servers powered by Nvidia's GB200 chips has shown improvement, contributing to the expected growth in AI server revenue. The company expects AI servers to account for 70% of its total server revenue this year, with AI server revenue expected to edge up this quarter and continue to grow next quarter.
It's worth noting that Quanta maintains its full-year notebook shipment guidance of single-digit year-on-year growth. In the first half of this year, AI servers accounted for more than 60% of Quanta's total server revenue. The company also reported a quarterly decline of 13.5 percent in net profit to NT$16.86 billion. Despite this, earnings per share dropped to NT$4.37 from NT$5.06 a quarter earlier, but increased from NT$3.92 a year earlier.
The company's board has also approved a plan to inject US$170 million into its US subsidiary Quanta Manufacturing Nashville LLC to boost AI server deployment in the US. The upgraded factory is expected to restart production early next year.
However, sales last month dropped 16.6% due to product transition as some major customers shifted orders to new-generation AI servers. The impact of this product transition on overall Quanta's financial performance is unclear at this time. The gross margin also dropped to 7.05 percent last quarter, down from 7.92 percent the previous quarter and 8.58 percent in the second quarter last year.
Despite these challenges, Quanta remains optimistic about its future in the AI server market. The company's focus on innovation and strategic partnerships positions it well for continued growth in this rapidly evolving sector.
[1] Quanta Computer Inc [2] Nvidia Corporation [3] Nvidia Corporation [4] Quanta Computer Inc [5] Quanta Computer Inc
Technology and data-and-cloud-computing sectors are significantly impacted by Quanta Computer Inc's decision to produce AI servers utilizing Nvidia's GB300 chips. With Quanta focusing on innovation and strategic partnerships, the anticipated growth in AI server revenue could potentially shape the future of both industries.
