Sturdy demand for merchandise to final, Gigabyte says

• By Chen Cheng-hui / Employees reporter

Gigabyte Expertise Co (技嘉) yesterday stated that robust gross sales of its shopper electronics-related merchandise, corresponding to motherboards and graphics playing cards, would proceed this quarter, and that demand stays robust for its server merchandise — synthetic intelligence (AI) servers particularly.

General, the corporate is assured that income development would stay regular this quarter. It expects this 12 months’s income to exceed NT$100 billion (US$3.08 billion) sooner than anticipated, due to continued end-market demand and efficient optimization of its product combine, it stated in a presentation doc launched after the corporate’s on-line traders’ convention.

Gigabyte’s income final quarter was NT$36.9 billion, up 52.53 p.c year-on-year and 41.2 p.c quarter-on-quarter.

Picture: Ann Wang, Reuters

It was the very best quarterly determine within the firm’s historical past, the corporate stated.

Gross sales from graphics playing cards accounted for 36 p.c of Gigabyte’s complete gross sales within the third quarter, adopted by servers at 27 p.c, motherboards at 22 p.c, and laptops and different pc peripherals at 15 p.c, it stated.

The corporate’s graphics card enterprise has come out of the trough skilled within the first half of the 12 months, with demand recovering and shipments booming within the second half as purchasers stepped up efforts to scale back channel inventories, Gigabyte advised traders.

Its motherboard enterprise is anticipated to return to constructive gross sales development subsequent 12 months following clear indicators of enchancment within the backside half of this 12 months, whereas server shipments are more likely to register a excessive double-digit share improve this 12 months, as demand for AI providers continues to rise, it stated.

To satisfy demand from purchasers, the corporate plans to optimize the manufacturing capability of two server meeting crops in Taiwan, Gigabyte stated, including that its major prospects are in Europe and the US, nevertheless it goals to achieve orders from the Asia-Pacific area.

The US AI chip ban wouldn’t have an effect on Gigabyte as it’s not delivery to China, it stated.

Gigabyte is striving to take care of its management by offering a wider alternative of product traces in contrast with its native friends, it stated.

Whereas it stays a robust provide accomplice of US graphics chip designer Nvidia Corp, it goals to launch new server merchandise for different chipmakers and cloud service suppliers subsequent 12 months, Gigabyte stated.

The corporate didn’t reveal its bottom-line figures for the third quarter, however analysts forecast that its gross margin would enhance to 13.3 p.c from 11.83 p.c within the second quarter, whereas its earnings per share would develop to NT$2.72 from NT$1.4, given higher economies of scale and higher-than-expected gross sales within the third quarter.

Gigabyte’s cumulative gross sales within the first 9 months of the 12 months totaled NT$91.37 billion, a rise of 15.13 p.c from the identical interval of final 12 months and a report excessive for the interval, the corporate stated.

By area, American markets contributed 41 p.c to the corporate’s gross sales, adopted by the Asia-Pacific area with 34 p.c and Europe and the Center East with 25 p.c, it stated.

Editor’s be aware – Gigabyte on Nov. 3 reported gross margin was 13.27 p.c and working margin reached 3.02 p.c within the third quarter, whereas earnings per share had been NT$2.31.