Nvidia Price Hikes Have Limited Impact on Leadtek Research Inc

Leadtek Research Inc, a distributor of graphics cards and artificial intelligence workstations, expects limited impact from Nvidia's price hikes on certain products. The company, a long-term partner of Nvidia, is an authorized reseller of the US chipmaker's products.

Nvidia recently notified customers of another round of price increases, with high-end computing cards and RTX PRO-series graphics processing units rising 40 to 60 percent amid higher memory costs. Further increases remain possible by the end of this year.

Leadtek's inventories secured before the price increases could meet demand through October, a source said. The company's revenue rose 59.68 percent sequentially and more than doubled year-on-year to NT$2.5 billion in the second quarter, driven by strong demand for Nvidia gaming graphics cards, AI workstations, and high-end GPUs.

Leadtek expects revenue this quarter to exceed last quarter's, with growth momentum mainly from high-end GPUs, particularly the RTX PRO 6000. For the full year, revenue is expected to outperform and could even double from last year's NT$4.44 billion if supply and demand for GPU products remain strong.