Inventec expects its server revenue to surpass initial projections for the fourth quarter of 2024, driven by robust H20 and H100 shipments. Despite declining notebook deliveries, the company's overall performance remains strong.
The company's October revenue reached unprecedented levels, primarily attributed to strong H20 and H100 server shipments, even as Chinese cloud demand shows signs of plateauing. However, notebook shipments declined, indicating a weaker-than-expected peak season for the segment.
Inventec's October revenue hit NT$646.85 billion (approx. US$20.45 billion), increasing 14.99% month over month and 60.1% year over year, marking the first time revenue has surpassed NT$600 billion. The company's cumulative revenue from January to October reached NT$5,131.65 billion, representing a 20.16% increase and setting a new record for this period.
While Inventec had initially anticipated a decline in server shipments for the fourth quarter of 2024 following a peak in the third, the unexpected October performance now points to a double-digit sequential increase for the current quarter. Meanwhile, notebook shipments decreased to 1.7 million units in October, with projections indicating a 5% sequential decline for the fourth quarter.
In terms of regional operations, Inventec's AI servers primarily serve clients in North America and China. The North American market focuses on motherboard shipments, which generate lower revenue but higher gross margins. In contrast, Chinese customers predominantly purchase complete systems, contributing higher revenue but yielding relatively lower gross margins.
Article translated by Jingyue Hsiao
