ASUS, GIGABYTE and MSI have notified channel partners that motherboard prices will rise another 5% to 10% starting in the fourth quarter, according to ABMedia, which cited a report by Commercial Times. The report said institutional investors expect motherboard revenue and profit in the second half to come in ahead of the first half, supported by higher average selling prices, or ASP, and stable gross margins.
CPU supply relief lifted third-quarter shipment momentum
The report said supply constraints on some mainstream CPU models have eased, helping the PC DIY motherboard market recover after the third quarter. Statistics cited in the report showed motherboard ASP had climbed by a double-digit percentage from the start of the year by the end of the third quarter.
The third quarter is traditionally a peak season for motherboards and graphics cards. With CPU supply improving and customer inventory replenishment demand returning, shipment momentum at most major Taiwanese motherboard makers stopped falling and turned higher. ASUS and GIGABYTE were estimated to post nearly double-digit quarter-on-quarter growth in third-quarter motherboard shipments, while MSI recorded single-digit growth.
Compared with the same period last year, however, shipments at all three companies were still lower. The report said higher ASP helped keep sales revenue flat or better.
Another 5% to 10% increase in Q4, with others following
Against a backdrop of peak-season demand and rising product costs, ASUS, GIGABYTE and MSI have informed distributors that motherboard prices will be raised again in the fourth quarter by 5% to 10%. After the three Taiwanese manufacturers began rolling out increases from October, other second-tier motherboard makers and Chinese brands also started to follow, the report said.
In terms of market mix, consumer demand is now concentrated mainly in mid-range and upper-mid-range products. On the Intel side, the focus is on the Arrow Lake platform, or Intel Core Ultra Series 2, paired with the Z890 and B860 chipsets. On the AMD side, the main products are the Ryzen 9000 series platform with AM5-based X870E, X870 and B850 chipsets.
Shipment momentum is expected to moderate after the market enters the fourth quarter. Even so, the upcoming Singles' Day, Black Friday and year-end shopping season could help motherboard makers continue clearing inventory.
Investors favor ASUS, GIGABYTE and ASRock as AI server demand grows
Institutional investors remain optimistic on the sector and specifically favor ASUS, GIGABYTE and ASRock among Taiwanese manufacturers. The report said strong momentum in each company’s AI server business is expected to push full-year revenue and profit to record highs.
For MSI, investors expect operating performance to improve gradually in the second half, mainly because of the launch of NVIDIA RTX Spark products and further expansion in its AI server business.
Full-year shipments still seen down about 30%
Despite the positive signals from price increases and the AI server theme, supply-chain estimates cited in the report suggest overall consumer motherboard shipments, after dropping by more than 40% in the first half, will recover in the second half but still decline by about 30% for the full year.
That means any improvement in motherboard profitability this year would come mainly from higher ASP and AI server operations rather than a broad-based recovery in consumer-market volumes. The report added that if end demand weakens because of the price increases, or if inventory digestion is slower than expected, whether second-half revenue and profit can outperform the first half will still face a test.