Lite-On Technology expects strong Q2 driven by AI shipments, aims for 30% AI revenue

Lite-On Technology (光寶科) anticipates a robust second quarter, with its general manager, Chiu Sen-pin, expressing optimism about customer demand and budgets exceeding last year's levels. AI-related product shipments are progressing as expected, setting the stage for a busy second half of the year. The company is prioritizing an increase in earnings per share (EPS), with Chiu stating, "The second quarter should be very good."

As AI server power supplies, Power Racks, and integrated cabinet solutions begin to scale, Lite-On aims for its AI products to constitute 30% of its revenue this year. The company views this segment as a crucial driver for future growth. Chiu noted at the Computex trade show that customer demand and capital expenditure plans are stronger than in the previous year, and current order fulfillment aligns with projections. The company is focused on operational fundamentals to enhance profitability, aiming to boost EPS.

Lite-On is actively developing AI data center integrated solutions beyond its existing power products. The company plans to begin shipping 800V high-voltage DC (HVDC) related products in the second half of this year, with production volumes increasing next year. Its cabinet business is already in collaboration with two major cloud service providers (CSPs) and is expected to become one of the fastest-growing product lines. Power Racks are slated for shipment by the end of this year, initially focusing on adoption, with revenue and profit contributions expected to grow significantly starting next year.

Despite the positive outlook, Chiu mentioned that memory supply remains tight, which affected first-quarter shipments. He expects the supply situation to gradually improve by the end of June or July, which should facilitate smoother product shipments and support the company's performance in the second half of the year.

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The second quarter should be very good.