Lite-On Predicts Profit Growth Rebound
Lite-On Technology Corp, a leading Taiwanese company, has announced that it expects its profit growth to rebound from the second quarter of this year. The company’s prediction is based on strong shipments of advanced power management solutions for artificial intelligence (AI) infrastructure.
In the first quarter, Lite-On’s revenue was NT$43.4 billion (US$1.38 billion), down 2.1 percent quarter-on-quarter but up 19.2 percent year-on-year. The company’s net profit totaled NT$3.78 billion, down 2.2 percent quarterly, but up 9.23 percent annually.
Deferred Orders and AI-Related Products
The decline in revenue and profit last quarter was mainly due to deferred orders from customers in the consumer market, such as gaming console makers, amid memory component shortages. However, the company expects revenue this quarter to grow sequentially and annually due to robust shipments of next-generation AI power management systems.
Lite-On’s president, Anson Chiu, stated that the company’s new 110kW power shelf has progressed smoothly, with mass production scheduled for June. The company will also begin shipping in-rack cooling distribution units to customers in small volumes this quarter.
AI-Related Businesses to Contribute 30% of Revenue
Lite-On maintained its goal of having AI-related businesses contribute more than 30 percent of total revenue this year. In the first quarter, sales in the cloud computing and AI-of-Things businesses accounted for 53 percent of total sales, followed by the information technology and consumer electronics businesses at 30 percent and the optoelectronics business at 17 percent.
Higher shipments of AI-related products are also expected to boost the company’s gross margin, which fell 0.9 percentage points year-on-year to 21.7 percent last quarter.
Indian Investors and the Global AI Market
For Indian investors, Lite-On’s prediction of a profit growth rebound is a significant development. The company’s focus on AI-related products and solutions is in line with the growing demand for AI infrastructure globally. Indian investors can consider investing in companies that are involved in the development and manufacturing of AI-related products, such as Artificial Intelligence Stocks and AI Infrastructure Companies.
Investment Opportunities in the AI Sector
Indian investors can also explore investment opportunities in the AI sector by considering companies that are listed on the Indian stock exchanges, such as Indian AI Companies and AI Startups in India. Additionally, investors can consider investing in global companies that are involved in the development and manufacturing of AI-related products, such as Global AI Companies.
Conclusion
In conclusion, Lite-On’s prediction of a profit growth rebound is a significant development for Indian investors. The company’s focus on AI-related products and solutions is in line with the growing demand for AI infrastructure globally. Indian investors can consider investing in companies that are involved in the development and manufacturing of AI-related products, as well as exploring investment opportunities in the AI sector in India and globally.