Inventec Strong general server upcycle, AI visibility lags peers; N

Research evidence excerpt

Inventec Strong general server upcycle, AI visibility lags peers; N

-led NB margin dilution. Prev Cur Δ

Adj. EPS - 26E (NT$) 2.68 2.93 9.5%

Opex ratio was 3.3%, lower than BBGe of 3.6%, driven by stronger-than- Adj. EPS - 27E (NT$) 2.94 3.23 9.7%

expected top line growth (+28% YoY vs. +10% YoY of opex). Net-net, OPM

was largely in line with Street estimates. Looking ahead, management guided Quarterly Forecasts (FYE Dec)

to a sequential 2Q26 rev growth, driven by strong general server L6 shipment Adj. EPS (NT$)

and system ramp for China customer. Overall, we model 20% QoQ growth for 2025A 2026E 2027E

Q1 0.47 0.68 0.46

2Q26 revenue with OPM improvement due to positive OP leverage. Q2 0.61 1.02 0.86

• Servers remain the key growth driver in 2026; visibility skewed towards Q3Q4 0.760.58 0.730.51 1.050.85

general servers vs. AI. Management reiterated 30–50% YoY revenue growth FY 2.42 2.93 3.23

for the server segment in 2026 (vs. 1Q26 server revenue up 25% YoY), driven

primarily by 30%+ growth in general servers and <50% growth in AI servers. Style Exposure

Enterprise server shipments appear flattish, implying CSP general server

shipments up ~25%+. Early indicators also point to continued growth into

2027/28. In contrast, Inventec’s AI server growth outlook appears below peers

(100%+ growth), with the key driver skewed towards China CSP demand. The

company is progressing on VR200 and MI450 platforms, but we see limited

scale and working capital constraints as a competitive headwind, particularly

on rack-level programs.

• PC softness a risk into 2H26; automotive growth offsets, but margins

likely remain pressured. Management guided 2Q26 NB shipments to be flat

QoQ and highlighted risks to the 2H26 outlook. For the full year, NB shipments