Taiwan's Wistron says AI server demand remains strong, quarterly profit up 128%
SMH•Capital spending, share issuance and Texas facility
- The company's board approved an additional T$10.5 billion in capital expenditure for capacity expansion at its Taiwan facilities, it said in a statement.
- The board also approved filing applications with relevant regulatory authorities to issue up to 250 million new common shares in the form of Global Depositary Receipts.
- The company launched in July a $700 million manufacturing facility in Texas to produce Nvidia's latest AI systems.
- Wistron shares closed up 4.8% on Tuesday ahead of the results. The stock has risen 30% so far this year, lagging a 50% gain in Taiwan's benchmark index .TWII.
AI server demand remains strong as quarterly profit jumps
Taiwanese server manufacturer Wistron, a Nvidia supplier, said on Tuesday demand for AI servers remained strong, as it reported a 128% surge in second-quarter net profit.
- Second-quarter net profit rose to T$14.827 billion ($457.86 million), while revenue increased 64% to T$895.44 billion.
- The overall AI server demand, including requests from cloud service providers and enterprise customers, remains very strong and continues to exceed supply, said Jeff Lin, CEO of Wistron, on an earnings call on Tuesday.
