Investment Rating - The industry investment rating is In-Line [7] Core Insights - In 1Q25, global ODM direct server shipments reached 1.86 million units, reflecting a 25% quarter-over-quarter (q/q) increase and a 50% year-over-year (y/y) increase, accounting for 47.4% of global server shipments [2][3] - The aggregate ODM direct server shipment value was US$59.6 billion, showing a 45% q/q increase and a 253% y/y increase, driven by strong demand for AI servers and high-ASP rack architecture [3][6] - The report highlights a preference for specific ODMs, including Hon Hai/FII, Wistron, Quanta, and Wiwynn, due to their strong performance and market share gains [6] Summary by Sections ODM Shipment Performance - ODM shipment units grew 25% q/q and shipment values grew 45% q/q in 1Q25 [1] - MiTAC experienced the highest growth in shipment units at +46% q/q [2] Market Share Analysis - Wiwynn led the major ODMs with a 22.6% market share, followed closely by Quanta at 22.5% [3][12] - Intel regained unit share to 47.0%, while AMD's share dropped to 36.4% [4][11] Regional Performance - The USA was the best-performing region with a 67% y/y growth in shipment units, accounting for 74% of aggregate ODM direct shipments [5][10] Stock Implications - The strong demand for general servers from cloud services contributed to unit share gains for Quanta and Wiwynn, with expectations of continued revenue growth for major ODMs in the upcoming quarters [6]