Quanta (2382 TT, NT$334.50) - AI server demand remains strong but GM is key

Research evidence excerpt

Quanta (2382 TT, NT$334.50) - AI server demand remains strong but GM is key

st of the special factors mentioned above will

diminish in 2Q26, we expect 2Q26 GM to be better than 1Q26’s. Looking ahead to 2H26,

we are still positive on Quanta given the growing general server demand and a monthly

average GB shipment volume of >2k racks. In addition, the management expects that a few

Source: CMoney ASIC projects and MI455 Helios racks could be shipped and contribute to revenue starting

What’s changed in 4Q26.

New Old % AI server shipment to double, general server shipment to grow >10% YoY

Rating Buy Buy

Since late 2025, we have seen increasing demand for general servers. When we talked to

Target price (NT$) 416 390 7

downstream ODMs and CSPs, most of them indicated that general servers are needed moreEPS forecast (NT$) 26.02 24.42 7

Target PE (x) 16 16 (than-expected) now as the CPU’s role in AI applications has changed, especially when

Agentic AI has become more popular now. Based on the latest channel checks, we again

Financial summary Year-end: Dec 31 revise up our growth projection for general servers from 8~10% to 12% YoY, and we do see

NT$mn FY25 FY26F FY27F

potentially further upside later, which will likely continue in 2027. Quanta also expects its

Net sales 2,123,689 3,688,936 5,469,133

YoY growth (%) 50.5 73.7 48.3 general server shipment to grow >10% YoY in 2026, and it maintains its guidance of more

Op. profit 87,396 116,370 160,792 than doubled growth for AI servers even if some key components might be changed to a

YoY growth (%) 41.8 33.2 38.2 consignment model, which is currently being discussed with clients. The server segment

Net profit 74,988 100,471 138,088 accounts for 80% (of which AI servers account for 75%) of Quanta’s 1Q26 total revenue