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Quanta: Monster June Positive For PC Supply Chain

|Includes:Advanced Micro Devices, Inc. (AMD), ATHR, AUTH, DELL, HPQ, IDTI, INTC, LSI-OLD, LXK, MRVL, MU, NVDA, SMSC, STX, SYNA, WDC
  • Jun revs NT$61.938B (US$1.886B)
  • +34.1% M/M, well above 7-yr seasonal avg of +13.8%
  • Implies Q2 revs of NT$159.961B (US$4.871B)
  • +7.0% Q/Q, above 7-yr seasonal avg of +5.0% Q/Q
  • Consistent with other positive PC supply chain data
  • Supports our long position on numerous PC supply chain names

Earlier today Quanta Computer, the world's largest notebook ODM, reported Jun revs of NT$61.938B (US$1.886B). The M/M growth of +34.1% is well above a 7-yr avg of +13.8%. The strong Jun numbers implies Q2 revs of NT$159.961B (US$4.871b). The Q/Q growth of +7.0% is above a 7-yr avg of +5.0% Q/Q.

Quanta's May results were below seasonal norms, due to component shortages (see our comment from 6.10.09), as were April's. But given the very strong Jun numbers, those component shortages (LCD panels and optical pick-up heads) seem to be resolved.

Taiwan data thus far for June is looking very strong. We view Quanta's positive June and Q2 results as the latest in a long line of positive PC supply chain data points going back to early April (see SMSC: Positive PC Supply Chain Indicator, 4.9.09). Earlier today, we published a note on Acer's very strong Jun results.We reiterate our long position on AMD, ATHR, AUTH, DELL, HPQ, IDTI, INTC, LSI, LXK, MRVL, MU, NVDA, SMSC, STX, SYNA, and WDC.