Gigabyte posts record profits on AI demand, but margins dip

Taiwanese hardware manufacturer Gigabyte Technology reported record-high net profits for the first half of 2026, attributing the success to robust demand from AI clients. The company's revenue and profit both reached historical highs during this period, with net profit soaring 116.6% year-on-year to NT$6.606 billion (approximately $200 million USD).

Despite the record profits, Gigabyte's stock faced pressure, trading near its daily limit down on August 14. This decline followed the announcement that while the second quarter saw significant revenue growth of 37.2% sequentially and 41% year-on-year, both the gross profit margin and operating profit margin decreased compared to the previous quarter. The gross margin fell to 9.62% and the operating margin to 5.63%.

Looking ahead, Gigabyte expressed optimism for the second half of the year, anticipating even stronger performance than the first. The company cited continued high market demand and accelerated AI deployment as key drivers. Gigabyte plans to deepen its collaborations with existing clients and expand its customer base, expecting smoother shipments and sustained growth throughout the remainder of the year.