Nvidia server assembler Wistron doubles revenue, then sells $1.47 billion of stock
Wistron, the Taiwan company assembling Nvidia's AI server racks, grew revenue 97 percent through September and funded the ramp with a discounted $1.47 billion share sale. November's third-quarter report decides whether that volume becomes margin.
Vincent Jiang · 3 min read
The Vera Rubin ramp lands on a thin-margin balance sheet
Two numbers frame the story at Wistron before any production news does. The company, a Taiwan contract manufacturer spun off from Acer in 2001 10, turned TWD 895.44 billion of second-quarter revenue into a 3.74 percent operating margin 9. In September it diluted its shareholders by about 7.29 percent to raise cash for the same business 5. Servers already made up 70 percent of its $70.2 billion revenue last year 10.
Industry writer Dan Nystedt reported this month that production of Nvidia's next-generation Vera Rubin servers has started at Wistron, alongside mass output of its GB300 Blackwell racks 4. He noted that AMD−5.74% — AMD, down 5.74 percent today chief executive Lisa Su toured Zhubei A1, a new Wistron plant, a visit he tied to Helios, AMD's rack-scale AI platform 4. Its first US factory, a $700 million plant in Fort Worth, Texas, opened in July and builds GB300 systems 5.
Shareholders are paying for the ramp
The filings show who carries the cost. On September 7, 2026 Wistron sold 25 million global depositary receipts, offshore certificates that each stand for 10 local shares, at $58.88 apiece, raising $1.47 billion 5. The price was a 5.5 percent discount, the new shares equal about 7.29 percent of the pre-sale count, and proceeds are earmarked for foreign-currency raw materials 56.
A Wistron unit cleared $59.1 million on September 24 for its Ninh Binh plant in Vietnam 2. On October 12 the board approved TWD 7.09 billion more capital spending, TWD 6.5 billion of it for a Kaohsiung facility, and proposed paying Coretronic, a Taiwanese electronics group, up to TWD 1 billion for a Tainan factory 3. None of these disclosures names a customer putting up the money. One analysis noted that Nvidia−1.20% — Nvidia, down 1.20 percent today gains a better-funded supplier without touching its own balance sheet 7.
Record revenue on a 3.74 percent margin
September revenue reached TWD 380.81 billion, up 87.2 percent from a year earlier but down 17.2 percent from August's record TWD 460.07 billion 18. Nine-month revenue hit TWD 2.89 trillion, up 97.2 percent 2.
August's record TWD 460 billion month gave way to a 17% September pullback
Data
| Monthly revenue | |
|---|---|
| Jul 2026 | TWD 308.22B |
| Aug 2026 | TWD 460.07B |
| Sep 2026 | TWD 380.81B |
The second quarter carries the catch. Revenue rose 64 percent to TWD 895.44 billion and net income rose 128 percent to TWD 14.83 billion, on a 3.74 percent operating margin 129. Chairman Simon Lin co-created the "smiling curve" thesis: assembly, the middle of the chain, earns the least 10.
Q2 profit grew twice as fast as revenue, on a 3.74% operating margin
Data
| Value | |
|---|---|
| Revenue growth (Q2 YoY) | 64% |
| Net income growth (Q2 YoY) | 128% |
| Operating margin (Q2) | 3.74% |
November prices the margin
Goldman Sachs−1.19% — Goldman Sachs, down 1.19 percent today kept a TWD 295 target on September 30 1, and a 19-analyst median target sits at TWD 277.50, with 2026 earnings estimates still climbing 89. The market paid TWD 182.50 on October 16, valuing Wistron at TWD 615.2 billion, about 11 percent under its TWD 206 high 3.
Wistron trades 34% below the analyst median target
Data
| Value | |
|---|---|
| Price, Oct 16 | 182.5 TWD |
| 2026 high | 206 TWD |
| Median target (19 analysts) | 277.5 TWD |
| Goldman Sachs target | 295 TWD |
Bulls can answer that net income grew twice as fast as revenue in the second quarter 12, and that hyperscaler demand, from the largest cloud operators, still outran what the industry could deliver 6. DigiTimes also reported new HPE, Lenovo and Oracle orders in August, adding a fourth-quarter lift 11. Third-quarter statements are due in November, with October's monthly revenue just before them 1. The number that settles the argument is the operating margin line on that release.
More about NVIDIA
NVDA · Fiscal Q2 2027Revenue rose 106% to $96.2B, 92.5% of it from Data Center, “driven by the ramp of our Blackwell Ultra infrastructure”. Gains on equity stakes of $7.8B lifted net income to $59.7B.
Show as a table
| Line | Value |
|---|---|
| Revenue | $96.2B |
| Gross margin | 75.0% |
| Operating margin | 66.2% |
| Net income | $59.7B |
| Hyperscale | $48.7B |
| AI clouds & enterprise | $40.3B |
| Data Center | $89.0B |
| Edge Computing | $7.2B |
| Gross profit | $72.1B |
| Cost of revenue | $24.1B |
| Other income | $7.8B |
| Operating income | $63.7B |
| Operating expenses | $8.4B |
| Tax | $11.8B |
| R&D | $7.1B |
| SG&A | $1.4B |
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
