Key insights
- Delta Electronics, a key supplier for AI data centers, reported strong revenue growth driven by AI demand but warned of rising costs due to oil prices, material shortages, and inflation. Increased capital expenditure and capacity expansion plans in multiple regions signal continued investment in AI infrastructure. This indirectly supports bullish sentiment for US tech companies like Nvidia, Google, and Meta, which rely on such infrastructure.
By Wen-Yee Lee
TAIPEI, April 30 (Reuters) - Delta Electronics, a major provider of power supply and cooling solutions for AI datacentres, warned that it expects costs to rise in the coming quarters, with oil prices rising and ongoing material shortages.
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It added that there were also signs of inflation driven by AI demand.
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The company said its capacity remained tight and it was expanding in China, Thailand, the United States and Taiwan.
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It said in February its capital expenditure totalled T$46.1 billion ($1.46 billion) in 2025 and it reiterated on Thursday it would be higher this year.
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Delta Electronics’ customers include Nvidia and major cloud service providers such as Google and Meta Platforms.
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Delta Electronics is the second most valuable company on the Taiwan stock exchange, with a market capitalisation of $178.46 billion, after Taiwan Semiconductor Manufacturing Co Ltd.
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It reported first-quarter revenue of T$159.35 billion ($5.02 billion), up 34% from a year earlier, driven by AI data centre build-out. Its gross profit was up 56% year-over-year at T$59 billion ($1.86 billion).
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Delta Electronics shares have risen 124.82% so far this year, far outperforming a 34.4% rise in the broader market. The company’s shares closed flat on Thursday ahead of its earnings release.
($1 = 31.7170 Taiwan dollars)