Summary of Conference Call Notes Industry Overview - **Industry**: Greater China Technology Hardware - **Focus**: Monthly and quarterly rack shipment forecasts for GPU AI server ODMs in 2025 Key Points 1. **Rack Shipment Forecasts**: The GB200/300 racks forecast remains at 28,000 units, with expectations for significant growth in Q4 to 14,000-15,000 racks, up from 8,000-8,500 in Q3 [3][11] 2. **October Rack Builds**: October rack builds increased approximately 3% month-over-month, indicating a positive trend for Q4 builds [3] 3. **GB200 and GB300 Developments**: GB200 rack builds are expected to continue into Q1 2026, while GB300 builds have commenced and are anticipated to ramp up smoothly without yield issues reported [3] Company-Specific Insights Quanta Computer Inc. (2382.TW) - **October Revenue**: Approximately NT$173 billion, a decrease of 6% month-over-month but an increase of 27% year-over-year - **Shipments**: Lower notebook shipments at 3.5 million units (-24% m/m), partially offset by higher GB200 rack output of 850-900 racks [4] Wistron Corporation (3231.TW) - **October Revenue**: NT$185 billion, down 9% month-over-month but up 92% year-over-year - **Shipments**: Slight decrease in L10 computing trays (300-350 rack equivalents, down 40-45% m/m) and a minor decline in notebook shipments at 2.1 million units [5] Hon Hai Precision (2317.TW) - **October Shipments**: GB200 rack shipments were stable at approximately 2,600 racks - **Future Expectations**: Anticipated increase in server rack shipments, contingent on customer schedules for infrastructure builds [6] Market Dynamics - **Market Share**: As of October 2025, Hon Hai holds 50% of the GB200/300 NVL72-equivalent rack supply, followed by Quanta at 22%, Wistron at 20%, and Wiwynn at 2% [17] - **Rack Mix Breakdown**: The GB200 racks account for 79% of the total, while GB300 racks make up 21% [20] Risks and Opportunities - **Upside Risks**: Better-than-expected demand for iPhones, AI server business growth, and potential M&A activities [25][26] - **Downside Risks**: Slower-than-expected AI server penetration, geopolitical issues affecting investments, and margin pressures from rising labor costs [28] Analyst Ratings - **Overall Industry View**: In-Line [8] - **Company Ratings**: - Quanta: Overweight - Wistron: Overweight - Hon Hai: Overweight [83] Conclusion The conference call highlighted a positive outlook for the Greater China Technology Hardware sector, particularly in the GPU AI server market, with significant growth expected in rack shipments. Company-specific performances varied, with some experiencing revenue declines while others showed strong year-over-year growth. The market dynamics indicate a competitive landscape with potential risks and opportunities that could impact future performance.