GIGABYTE Chairman: AI Order Visibility is Clear, Stock is Undervalued

(CNA, Taipei, 9th) Yeh Pei-cheng, Chairman of server and board manufacturer GIGABYTE, stated today that the order visibility for AI servers this year is very clear, and the company has already begun planning its roadmap for next year. He believes this year's overall revenue growth has a chance to exceed last year's. He admitted that GIGABYTE's price-to-earnings (P/E) ratio is low and the stock price is "definitely undervalued," but he is confident in GIGABYTE's profitability and development strategy.

GIGABYTE held its annual shareholders' meeting today, after which Chairman Yeh was interviewed by the media, discussing the outlook for the artificial intelligence (AI) server market in the second half of this year and into the next.

He pointed out that the biggest bottleneck for future data center construction remains electricity. This is not just a problem for Taiwan but a challenge that all countries need to actively overcome. As long as power and various infrastructure are in place, subsequent product delivery and operation will be very smooth.

Due to memory shortages, there are market rumors that NVIDIA's new Vera Rubin platform may have its specifications adjusted. Yeh believes that when new products are in the specification-setting stage, some adjustments may indeed be made due to considerations like initial yield or power consumption, but this is a normal part of new technology development. For users, the actual performance of the new products will remain at a high level without a noticeable difference, so there is no need for excessive worry.

In terms of product strategy, Yeh said that GIGABYTE, unlike other large Original Equipment Manufacturers (OEMs), follows a diversification path. In the second half of this year, AI servers, including NVIDIA's B300 and GB300, will still account for a very high proportion of shipments.

He emphasized that GIGABYTE's ability to provide flexible and diverse product solutions for the specific needs of different customers is a major advantage in the market. GIGABYTE's order visibility for this year is very clear, and they have even begun planning next year's operational roadmap with customers.

Regarding the traditional personal computer (PC) market, Yeh admitted that the market's recovery this year has been slightly slow. Although performance in the second half of the year will still be better than the first, he remains cautious about whether there will be an explosive rebound. Overall, driven by the strong momentum of AI servers, the revenue gap between the first and second halves of GIGABYTE's year will not be as drastic as in the traditional electronics industry.

Media questioned the impact of key component shortages and price hikes, such as memory, on gross margins. Yeh said that component shortages and price increases are public knowledge in the market. Customers' strategies have shifted to prioritizing securing supply, with price being a secondary concern. As long as GIGABYTE can guarantee a smooth supply, it is relatively easy to communicate with customers and pass on costs.

When asked if he thought GIGABYTE's stock was undervalued, Yeh smiled and said, "Definitely undervalued." He explained that compared to AI-concept stocks in the same and different industries, GIGABYTE's current P/E ratio is actually low. Based on GIGABYTE's profitability and overall development strategy, he believes the market and investors will naturally come to a reasonable valuation. (Editor: Pan Yi-ching) 1150609