AI server boom, hyperscaler demand to drive sharp revenue inflection for Quanta

Taiwanese contract manufacturer Quanta Computer Inc. (TWSE: 2382) is set for an inflection in growth as surging investment in AI infrastructure by major cloud providers reshapes its revenue mix and pricing dynamics.

Based on Visible Alpha consensus, AI server revenue is expected to surge 132% year-on-year to NT$2.5 trillion in 2026, accounting for the bulk of expansion in Quanta’s core server business. Total server revenue is expected to more than double, increasing 103% to NT$3.1 trillion, as the company's exposure to the capex cycles of hyperscale customers deepens.

By contrast, general-purpose servers, historically a steadier but lower-growth segment, is projected to grow a still strong but relatively modest 43% to NT$622 billion in 2026, highlighting the widening divergence between AI-led and traditional compute demand.

Servers already represent roughly 84% of Quanta’s total revenue base, with AI systems comprising about 80% of that segment. The mix shift is also driving a sharp uplift in pricing: average selling prices for servers are forecast to climb 75% year-on-year to NT$1,067 in 2026, reflecting the higher value of AI-optimized systems incorporating advanced GPUs and networking components.

Server volume growth is also expected to remain supportive, with shipments expected to rise to 3.64 million units in 2026 from 3.04 million last year. Taken together, the acceleration in AI server demand is expected to lift Quanta’s total revenue by 74% to NT$3.7 trillion in 2026.

 This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.