Quanta's AI Server Revenue Sees Double-Digit Growth in Q1, Up 66.6% Year on Year to US$25.7B

According to Taipei Times, Quanta Computer said on May 14 that AI server revenue would rise by a double-digit percentage this quarter, citing strong cloud customer orders through 2028. The firm's first quarter revenue climbed 66.6% year on year to US$25.7 billion, with servers accounting for 80% of sales and AI servers representing 75% of server revenue.

Server revenue grew 30% from the prior quarter. However, gross margin fell to 4.78% from 7.92% a year earlier, pressured by higher AI server rack costs and a transition between Nvidia GB200 and GB300 platforms. Quanta plans US$952 million in capital spending in 2026 for AI expansion in the US and Thailand, and approved an US$800 million injection into three overseas units.