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Dell Earnings Preview: AI Order Upside Expected to Benefit Taiwanese Suppliers
Electronic Technology · Computer Peripherals · economic_daily · 2026-08-30
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As Dell prepares for its Q2 earnings release, analysts anticipate strong AI server demand and potential order revisions, highlighting key Taiwanese suppliers.
What Happened
Dell Earnings Outlook: Dell is set to report its second-quarter financial results on September 1, with expectations of upward revisions in AI server orders driven by key clients like xAI. Analysts believe Dell's AI business will maintain double-digit profit growth in the coming years, supported by strong demand and high-margin service offerings.
Taiwanese Supply Chain: Wistron continues to handle front-end assembly, while Dell focuses on high-value L11-L12 services. Analysts maintain a positive outlook on Foxconn and Quanta, while highlighting Compal as a key beneficiary due to new capacity and future ASIC order contributions expected by 2027.
ASIC Market Dynamics: The industry is increasingly focusing on ASIC development, with Google's TPU racks expected to see significant shipment growth by 2027. Given the cost advantages of ASICs over NVIDIA solutions, the market scale for TPU racks is projected to rival that of NVIDIA's offerings within a few years.
Capacity Expansion: Surging demand for TPU racks is expected to strain existing supply chains, necessitating further capacity expansion. Beyond current players like Inventec and Celestica, industry reports suggest that Foxconn and Compal may enter the TPU rack assembly market by 2027 to meet rising demand.