Goldman Sachs: Quanta (2382.TW) AI Server Racks Ramping Up; Model Transition and PC Pull-In May Weigh on 3Q26; Neutral
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Goldman Sachs maintains a Neutral rating on Quanta (2382.TW), noting that while AI server rack shipments are accelerating, a product model transition and PC demand pull-in effects could weigh on third-quarter 2026 performance. AI server rack volumes are expected to ramp up strongly during the first half of 2026, driven by robust demand. However, the subsequent transition to newer models is likely to cause a temporary slowdown in shipments during the third quarter.
Additionally, Quanta's PC business is experiencing a short-term benefit as customers pull in orders ahead of schedule, which is boosting second-quarter performance. This dynamic is expected to result in subsequent demand softness, further dragging down third-quarter results. Consequently, third-quarter revenue may decline sequentially due to these dual headwinds in both the server and PC segments.
Goldman Sachs notes that gross margins for AI servers remain lower than those of traditional servers, though scale efficiencies partially offset this pressure. Full-year 2026 AI server shipments are projected to grow over 50% year-over-year, although the corresponding profit contribution remains constrained. Valuation currently sits near historical medians, lacking distinct upward catalysts. Furthermore, intensifying competition could potentially impact Quanta's share in the AI server market. Goldman Sachs reiterates its Neutral stance with no clear adjustments to the existing target price.
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