Traditional Peak Season and Improved Supply Chain Drive Strong Q3 Outlook for Motherboard Makers

According to a report issued by a local institutional investor, the motherboard segment saw a 6% month-on-month revenue decline in June, but a 35% year-on-year increase, slightly below initial expectations. However, in the third quarter, improved supply chain conditions and the sequential launch of NVIDIA's AI servers and AI PCs are expected to drive strong operational performance through year-end.

The investor noted that despite short-term pressures from component shortages and cost increases, motherboard manufacturers benefited in Q2 from a minor inventory build-up ahead of the second-half peak season and strong demand for AI servers, achieving a 17% quarter-on-quarter and 16% year-on-year revenue growth.

Looking ahead to Q3, as the industry enters the traditional PC peak season and upstream component supply gradually improves, the investor forecasts an 8% quarter-on-quarter revenue rebound for the motherboard segment. Additionally, NVIDIA is expected to roll out its Rubin series of AI server products in the second half, while the new AI PC model RTX Spark is scheduled to launch in Q4, both of which will help boost end-market demand for board manufacturers.

The investor stated that Gigabyte (2376-TW), despite entering the traditional off-season for board products, saw a strong 37% quarter-on-quarter revenue growth in Q2 due to robust shipments of the AI server GB300, slightly exceeding expectations. MSI (2377-TW), on the other hand, experienced a slowdown in PC product shipments in June due to rising memory prices, but the company has shifted resources toward mid-to-high-end products, which is expected to improve gross margins. ASRock (3515-TW) was affected by component shortages in its server division, but with supply expected to improve in Q3, shipments are projected to rise significantly.