GOOD WITH THE BAD:
The forecast looks rosy for the most part from AI to gaming sectors, but acute price turbulence for key components could pose a challenge
By Meryl Kao / Staff reporter
Asustek Computer Inc (華碩) yesterday said revenue this quarter is expected to remain strong, driven by robust growth in its artificial intelligence (AI) server business and a sequential rebound in PC sales. Revenue last quarter increased 2 percent quarter-on-quarter and surged 44 percent year-on-year to a record NT$194.05 billion (US$6.16 billion), supported by robust growth in AI infrastructure deployments and rising penetration rates of AI PCs, Asustek chief financial officer Nick Wu (吳長榮) told an earnings conference. The systems business accounted for 46 percent of total revenue last quarter, followed by the open platform segment at 26 percent, and server and infrastructure solutions at 28 percent, the company said.
Asus logos are seen in this illustration taken August 19, 2025.
Photo: Reuters
Asustek expects PC revenue this quarter to grow 10 to 15 percent sequentially and server revenue to grow 50 to 100 percent quarter-on-quarter, while revenue from its components segment — mainly motherboards — is projected to be flat from the previous quarter, Wu said. The company’s PC and gaming businesses remain resilient despite market fluctuations, supported by strong branding, sound product competitiveness and effective supply chain management, he said.
FUTURE FOCUSHowever, sharp price fluctuations in key components, particularly memory chips and storage products, are a major challenge, he added. The company has clear order visibility for its server business in the second half of the year, with full-year server revenue projected to increase by at least 100 percent, Asustek cochief executive officer Samson Hu (胡書賓) said. Demand from new Neo Cloud clients would also help beef up the company’s server business, Hu said. As Nvidia Corp’s Vera Rubin platform is to enter volume production in the second half of this year, Asustek aims to rank among the first-tier suppliers in the Vera Rubin supply chain, he said. Asustek’s server business has reached a healthy level of profitability approaching that of tier-1 server makers and is expected to become the company’s third long-term growth pillar, he added. While memory prices nearly doubled and the shortage of central processing units (CPUs) remained unresolved in the first quarter, the company’s solid relationships with upstream suppliers have helped prevent supply shortages from materially affecting its operations, Asustek cochief executive officer S. Y. Hsu (許先越) said. The availability of memory supply this year is expected to remain roughly flat from last year’s levels due to industrywide constraints, Hsu said. The company would prioritize high-end products in shipments, while adjusting shipments of midrange and entry-level products based on market conditions, he said. Asustek reported that net profit for last quarter fell 14 percent quarter-on-quarter and 23 percent year-on-year to NT$9.8 billion. Earnings per share decreased to NT$13.2, from NT$15.4 in the previous quarter and NT$17.2 a year earlier.