News
Wistron raises 2026 capex for AI server capacity expansion in Texas and Hsinchu
Thursday, January 1, 2026 at 04:42 AM
Wistron, a major AI server manufacturer, has increased its capital expenditure forecast for 2026 by NT$10.5 billion. This revised plan allocates funds for capacity expansion and infrastructure enhancements in both Texas, USA, and Hsinchu, Taiwan. The investment in Texas has been specifically raised to NT$18.89 billion (approximately US$581.3 million) from an earlier projection of NT$17.27 billion. Concurrently, the Hsinchu plan has seen an increase from NT$21.53 billion to NT$30.48 billion.
Context
Wistron reported fiscal 2025 and 4Q25 gross margins of 6.1% and 5.6%, missing market expectations of 6.5% and 6.8%. This underperformance reflects structural shifts in AI server architecture and margin pressures during the transition from Nvidia’s GB200 to the newer GB300 NVL72 systems. While Wistron stock remains near recent highs, its primary customer Dell Technologies has seen its share price retreat to September levels as investors shift focus from order backlogs to concerns regarding long-term profitability and margin dilution within the assembly tier.
Looking ahead, Wistron anticipates a 200% YoY shipment surge for the GB NVL72 series in 1H26, followed by the mass production of higher-margin ASIC AI servers in 2H26. However, these gains face headwinds from rising component costs and ongoing design changes dictated by Nvidia. The key for investors through 2026 will be whether economies of scale from massive volume growth can successfully offset the structural margin compression inherent in the current generation of AI hardware.
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