Gigabyte expects second half of year to be prosperous
By Meryl Kao / Staff Reporter
Gigabyte Technology Co (技嘉科技) expects revenue and earnings in the second half of this year to outperform first-half levels, driven by demand for artificial intelligence (AI) computing and faster customer deployment.
Ongoing progress in clients’ AI infrastructure buildout and improving key component supply would add growth momentum, Gigabyte said on Friday, when it reported that revenue in the first half rose 48.4 percent year-on-year to a record NT$249.27 billion (US$7.8 billion), and net profit surged 92.6 percent to a record NT$11.88 billion.
The company spent NT$1.82 billion on capital expenditure in the first half, mainly on office space and expanding AI server capacity and equipment, it said.
The Gigabyte Technology Co logo is shown at a trade show in Taipei in an undated photograph.
Photo: Fang Wei-chieh, Taipei Times
Amid strong demand, Gigabyte raised its full-year capital expenditure from NT$2.3 billion to NT$2.5 billion to NT$2.8 billion to NT$3 billion, it added.
In the second quarter, the company saw revenue reach NT$144.21 billion and net profit hit NT$6.6 billion, both quarterly records in the company’s history.
Gross margin fell about 2.4 percentage points quarter-on-quarter to 9.62 percent, albeit a 0.2 percentage point increase from a year earlier.
The sequential decline in gross margin was due to changes in product mix, as Nvidia Corp’s lower-margin GB-series AI servers accounted for a larger share of shipments last quarter, while graphics card and motherboard businesses entered their seasonal trough, a Gigabyte official said in a phone interview.
Gross margin is expected to rebound this quarter as graphics card and motherboard products enter their peak season and Gigabyte adjusts the shipment mix between GB-series and HGX AI servers, said the official, who declined to be named.
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