Quanta Computer (2382-TW) reported that its third-quarter AI server shipment volume declined slightly, yet revenue from this product line grew compared to the second quarter, with growth momentum shifting from shipment quantity to average selling price. The company stated that the change stems from transitions between platform generations, as customers pulled inventory for NVIDIA's NVL200, NVL300, and HGX200 platforms at different timings during Q3, causing fluctuations in total rack shipments. AI servers now account for 75% to 80% of Quanta's total server business, contributing approximately 60% of the company's overall revenue, with the server segment surpassing 80% of total company revenue starting this year.
The company projects Q4 will follow the same pattern: total rack shipments will decrease slightly compared to Q3, while revenue continues to grow quarter-over-quarter. Quanta attributed the Q3 product mix shift to varying customer demand timelines, with some clients advancing orders and others delaying, resulting in shipment volume fluctuations across different NVIDIA platform generations.
Quanta Stops Using Shipment Volume as Revenue Indicator
Quanta Computer stated that rack shipment counts no longer serve as reliable revenue indicators due to varying chip configurations per rack. The company explained that assembly levels range from L10 full-system assembly to L11 full-rack integration testing, with each rack containing different quantities of GPUs and CPUs depending on customer specifications.
The discrepancy grows larger as non-NVIDIA components increase in proportion. Quanta noted that racks incorporating GPUs, ASICs, and Arm-architecture CPUs show greater configuration variance, meaning identical rack counts can correspond to significantly different revenue figures. The company now provides only directional guidance and monetary amounts, declining to estimate AI rack shipment volumes for 2027. The Q4 outlook specifies revenue growth with a slight decrease in rack counts.
General-purpose servers provide additional support. Q3 saw small sequential increases in shipment volume and higher average selling prices. Quanta expects Q4 shipment volumes to maintain sequential growth, with 2027 general-purpose server revenue projected for double-digit growth driven by AI agent applications that execute tasks autonomously, generating demand for general computing capacity.
Quanta October Revenue Reaches NT$353.2 Billion
Quanta Computer's October revenue reached NT$353.2 billion, an increase of 8.6% from September's NT$325.3 billion and a year-over-year surge of 103.96%. Cumulative revenue for the first ten months totaled NT$3.31 trillion.
According to UAnalyze's industry database, monthly revenue has remained above NT$320 billion since July 2026. October's NT$353.2 billion figure, with its 103.96% year-over-year increase, represents double the revenue from the same period last year.
Quanta Confirms High Double-Digit AI Server Revenue Growth for 2027
Quanta Computer stated that Q1 2027 shipments will increase significantly compared to Q4 2026. The company explained that the transition between platform generations progresses gradually, with full-year AI server revenue maintaining high double-digit growth. Quanta noted that 2026 AI server revenue far exceeded the doubling target, creating a high baseline that makes sustaining triple-digit growth more challenging.
The company confirmed that revenue and rack shipment counts for this product line will continue to diverge, with quarters showing declining rack counts not indicating weakened demand. Before Q1 2027 shipments expand, average selling price and product mix composition will determine revenue performance.
FAQ
Why did Quanta Computer's AI server revenue grow in Q3 despite lower shipment volume?
Quanta Computer's Q3 AI server revenue grew due to higher average selling prices, even as shipment volume declined slightly. The company stated that growth momentum shifted from quantity to unit price, driven by changes in product mix as customers transitioned between NVIDIA platform generations including NVL200, NVL300, and HGX200.
What percentage of Quanta Computer's total revenue comes from AI servers?
AI servers account for 75% to 80% of Quanta Computer's total server business. The server segment itself surpasses 80% of the company's overall revenue starting this year, meaning AI servers contribute approximately 60% of Quanta's total company revenue.
What was Quanta Computer's October 2026 revenue performance?
Quanta Computer reported October revenue of NT$353.2 billion, representing an 8.6% increase from September's NT$325.3 billion and a 103.96% year-over-year increase. The cumulative revenue for the first ten months reached NT$3.31 trillion, with monthly revenue remaining above NT$320 billion since July 2026.
