Quanta pivots to AI infrastructure as server revenue overtakes notebooks

Quanta’s transition from a commoditized PC assembler to a specialized AI infrastructure architect signals a broader shift in the hardware supply chain. As streaming platforms and hyperscalers demand more efficient, dense compute for AI-driven recommendation and encoding workloads, ODMs that control the thermal and power envelope gain significant pricing leverage. This shift forces competitors like Foxconn and Inventec to accelerate their own high-end server roadmaps. For the streaming ecosystem, Quanta’s focus on rack-level integration suggests that compute efficiency will increasingly be solved at the physical hardware layer rather than through software optimization alone. Watch for Quanta’s 2025 capital expenditure levels as a proxy for long-term cloud infrastructure demand.

Additional context. In the months following its 2024 strategic reset, Quanta's financial results began reflecting a dramatic transformation in its revenue mix. Per the Taipei Times in May 2026, the company reported that servers accounted for 80% of its first-quarter revenue, with AI systems comprising 75% of that segment. This represents a historic flip from its origins as a notebook-first manufacturer; notebook revenue has conversely fallen to less than 20% of the total. Digital evidence of this shift surfaced in mid-2025 when Quanta disclosed that its AI server orders were secured through 2027, driven by massive capital expenditures from North American hyperscalers.

To support this growth, Quanta is making significant investments in next-generation cooling and expanded production. Per S&P Global in June 2026, AI server revenue is projected to surge 132% year-on-year to NT$2.5 trillion, as average selling prices rise due to the inclusion of advanced GPUs and liquid-cooling modules. The company’s subsidiary, QCT, has publicly highlighted its 'QoolRack' technology as a key differentiator, allowing data centers to transition to liquid cooling without replacing existing infrastructure. Additionally, per Digitimes in October 2025, Quanta confirmed it will spend approximately NT$30 billion on capital projects in 2026, specifically targeting facility expansions in the United States and Thailand to fulfill 'insatiable' AI demand while managing US tariff pressures.