In the first quarter of 2024, the company recorded its lowest earnings per share in four years.
Delta's Chairman, Yancey Hai, acknowledged the slowdown in the EV sector during the company’s May shareholders meeting, indicating that the boom years of exponential growth in the electric vehicle (EV) sector are now in the rearview mirror.
The company is now pivoting, capitalizing on the booming AI sector. Yancey Hai relates that in 2023, AI server power sources accounted for about two percent of Delta's revenue, which then doubled to four percent in the first quarter of 2024.
Bruce Lu, an analyst at Goldman Sachs Securities, noted in a March report that Delta also supplies AC/DC power units and cooling systems for server arrays. Including these components, Goldman Sachs estimates that Delta's AI-related revenue could account for approximately 11 percent of its total revenue this year, potentially rising to 20 percent by 2025 to surpass the EV sector as Delta’s primary growth engine.
A significant shift is occurring in cooling systems due to Nvidia’s latest B-series GPUs. As they tend to overheat due to their high performance, the company is transitioning from traditional air-cooling to more complex liquid-cooling solutions.
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Read the article: https://english.cw.com.tw/article/article.action?id=3691 (天下雜誌)
Organization and position: https://internshipabroad.ntu.edu.tw/organization/delta-electronics-americas-ltd
