Increased AI Shipment Proportion, Cheng Ping: High Gross Margin Expected to Be Maintained for a Period
Delta Electronics Chairman Cheng Ping stated that with the continuous increase in the proportion of AI product shipments, the company's gross margin reached 37% in the first quarter, and he expects the high gross margin to be maintained for some time.
📋 Article Processing Timeline
- 📰 Published: April 30, 2026 at 18:52
- 🔍 Collected: April 30, 2026 at 19:02 (9 min after Published)
- 🤖 AI Analyzed: May 1, 2026 at 02:56 (7h 54m after Collected)
Central News Agency
(Central News Agency reporter Tseng Jen-kai, Taipei, 30th) Delta Electronics' gross margin in the first quarter rose to 37%, a quarter-on-quarter increase of 2.4 percentage points, and a significant year-on-year increase of 5.2 percentage points from 31.8% last year. Delta Electronics Chairman Cheng Ping stated today at the investor conference that with the continuous increase in the proportion of AI product shipments, he is optimistic that the high gross margin situation can be maintained for a period.
Following Delta Electronics' release of its impressive financial report on the 29th, the company's stock price surged to a historical high of 2280 NTD today during intraday trading, closing at 2165 NTD.
Delta Electronics held an investor conference today, specifically explaining at the outset that the main reasons for the first-quarter gross margin increase included product mix and economies of scale. As demand for AI data centers grows rapidly, the gross margin of related products is higher than the overall average, and this drives greater economies of scale.
Secondly, due to some electric vehicle customers delaying or canceling certain car models, Delta Electronics recognized a one-time compensation income in the first quarter, which also boosted the gross margin.
Cheng Ping stated today that Delta Electronics' profit growth in the first quarter still primarily came from AI. Analyzing the performance of Delta Electronics' four major divisions in the first quarter, the Power and Components division saw an 87% year-on-year increase in profit; the Infrastructure division's profit grew by as much as 170% year-on-year. As for the electric vehicle market, which continues to face headwinds, Delta Electronics' Transportation division incurred a loss of 744 million NTD in the first quarter, and the Automation division's profit also declined by 77% compared to the same period last year.
Liu Liang-fu, Vice President of Delta Electronics' Corporate Investment Department, further analyzed that the combined capital expenditure of the four major US cloud service providers (CSPs) is approximately 410 billion USD in 2025, and is estimated to be 670 billion USD this year, a year-on-year growth rate of over 60%.
Liu Liang-fu further pointed out that while CSPs are spending money, are they making money? Looking at the first-quarter financial reports just released by the four major CSPs, all of them saw revenue growth: Meta's revenue grew by 33% year-on-year, Amazon by 17%, Google by 22%, and Microsoft by 18%. Moreover, the cloud service revenue of all four major CSPs grew faster than their overall revenue, with AI service growth rates being even higher. This outlines the growth background of the AI market, from which Delta Electronics is expected to benefit.
Investors are concerned about the trend of HVDC (High Voltage Direct Current) power architecture in AI data centers. Delta Electronics stated today that among these, the ±400VDC products are progressing faster because their installation architecture is similar to existing ones, and some shipments are expected this year, though the volume will not be large. As for the NVIDIA-led 800VDC, significant shipments are not expected until 2027. (Editor: Chang Liang-chih) 1150430
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(Central News Agency reporter Tseng Jen-kai, Taipei, 30th) Delta Electronics' gross margin in the first quarter rose to 37%, a quarter-on-quarter increase of 2.4 percentage points, and a significant year-on-year increase of 5.2 percentage points from 31.8% last year. Delta Electronics Chairman Cheng Ping stated today at the investor conference that with the continuous increase in the proportion of AI product shipments, he is optimistic that the high gross margin situation can be maintained for a period.
Following Delta Electronics' release of its impressive financial report on the 29th, the company's stock price surged to a historical high of 2280 NTD today during intraday trading, closing at 2165 NTD.
Delta Electronics held an investor conference today, specifically explaining at the outset that the main reasons for the first-quarter gross margin increase included product mix and economies of scale. As demand for AI data centers grows rapidly, the gross margin of related products is higher than the overall average, and this drives greater economies of scale.
Secondly, due to some electric vehicle customers delaying or canceling certain car models, Delta Electronics recognized a one-time compensation income in the first quarter, which also boosted the gross margin.
Cheng Ping stated today that Delta Electronics' profit growth in the first quarter still primarily came from AI. Analyzing the performance of Delta Electronics' four major divisions in the first quarter, the Power and Components division saw an 87% year-on-year increase in profit; the Infrastructure division's profit grew by as much as 170% year-on-year. As for the electric vehicle market, which continues to face headwinds, Delta Electronics' Transportation division incurred a loss of 744 million NTD in the first quarter, and the Automation division's profit also declined by 77% compared to the same period last year.
Liu Liang-fu, Vice President of Delta Electronics' Corporate Investment Department, further analyzed that the combined capital expenditure of the four major US cloud service providers (CSPs) is approximately 410 billion USD in 2025, and is estimated to be 670 billion USD this year, a year-on-year growth rate of over 60%.
Liu Liang-fu further pointed out that while CSPs are spending money, are they making money? Looking at the first-quarter financial reports just released by the four major CSPs, all of them saw revenue growth: Meta's revenue grew by 33% year-on-year, Amazon by 17%, Google by 22%, and Microsoft by 18%. Moreover, the cloud service revenue of all four major CSPs grew faster than their overall revenue, with AI service growth rates being even higher. This outlines the growth background of the AI market, from which Delta Electronics is expected to benefit.
Investors are concerned about the trend of HVDC (High Voltage Direct Current) power architecture in AI data centers. Delta Electronics stated today that among these, the ±400VDC products are progressing faster because their installation architecture is similar to existing ones, and some shipments are expected this year, though the volume will not be large. As for the NVIDIA-led 800VDC, significant shipments are not expected until 2027. (Editor: Chang Liang-chih) 1150430
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The text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.