Market Chatter: Compal Targets 10% Server Revenue as It Expands AI Push
Compal Electronics (TPE:2324) is targeting a sharp expansion in its AI server business as it works to lift server revenue to 10% by the end of this year, up from about 5% in the first quarter, CNA reported Wednesday, citing the company's General Manager Bernardo Rohde.He said the company sees opportunity in entering the AI server market later than peers, while sharpening its focus on core customer needs and infrastructure demand, according to the report.Compal also aims to reshape its revenue mix, targeting a 50:50 split between PC and non-PC businesses by 2027, compared with about 65% from PCs and 35% from other segments currently. Non-PC operations include servers, communications and healthcare, with growth supported by rising average selling prices and scaling infrastructure demand.The company is also expanding production capacity across Texas, Taiwan and Vietnam, alongside continued hiring in engineering to support AI server and rack-level system development, CNA added.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
