Nvidia Powers Big Gains For Quanta, Pegatron As AI Demand Explodes
Nvidia Corp's (NASDAQ:NVDA) Taiwanese partners Quanta Computer and Pegatron Corp projected upside from the artificial intelligence frenzy at the Computex trade show in Taipei on Tuesday.
AI server provider Quanta Computer expects server revenue to grow steadily in the coming quarters, with sales of AI and general servers posting a double-digit percentage in 2025.
Shipments of Quanta's servers equipped with Nvidia's GB200 chips, which began at the end of March, will likely remain steady this quarter, while shipments of GB300 servers will start by the second half of 2025, the Taipei Times reported Thursday, citing a Quanta official.The AI demand frenzy prompted Quanta to boost capital expenditure by ~40% to NT$20 billion ($663.17 million).
Nvidia co-founder and chief Jensen Huang described the GB300 server as a supercomputer for an AI factory.
Pegatron projected triple-digit server revenue growth this quarter sequentially backed by the demand frenzy. It held a more optimistic outlook for its server business in the second half of the year than the first, the Taipei Times reported Thursday, citing co-chief Johnson Teng at the Computex trade show.
Apple Inc's (NASDAQ:AAPL) Taiwanese iPhone assembler plans to ship more server samples this quarter and expects annual server revenue to double from last year, Teng said.
Server products based on Nvidia Corp's GB300 chips will likely gain traction in the second half of 2025, as per Teng.
The company has also identified potential opportunities in Japan and the Middle East.
BofA Securities analyst Vivek Arya noted Nvidia's expanding AI portfolio spans cloud, robotics, quantum, and 6G, driving a multi-trillion-dollar market opportunity.
He stated that Nvidia's key differentiators include its ability to expand its addressable market across multiple vectors of silicon, systems, software, and services, drive scale with global supply-chain partners, and solid balance sheet to make strategic investments in the ecosystem.
Price Action: NVDA stock traded higher by 1.58% to $133.88 at last check Thursday.
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