Delta Thailand forecasts strong AI-driven sales growth for coming years

Delta Electronics (Thailand) Pcl, the nation’s most valuable publicly traded company, anticipates a sustained period of robust expansion, predicting “double-digit” sales growth for at least the next two years. This optimistic outlook is primarily fueled by surging global demand for artificial intelligence (AI)-related technologies, according to Chief Executive Officer Victor Cheng.

As a key producer of critical components for both data centers and electric vehicles, Delta Thailand is strategically increasing its investment to capitalize on this burgeoning market. The company’s products, ranging from power solutions and thermal management systems to passive components, are integral to the infrastructure that underpins the AI revolution, particularly the high-density servers and vast computing networks required to train and deploy advanced AI models. This direct link to the foundational hardware of the AI ecosystem positions Delta to benefit significantly from the ongoing technological shift.

Cheng confirmed that the company is actively boosting its capital expenditure to support its ambitious expansion plans. This investment is geared towards enhancing production capacity and potentially advancing research and development to meet the evolving demands of AI and EV sectors. The company also indicated its intention to revise upwards its sales forecast for the second half of the current year, a move that underscores its strong internal confidence in the market’s trajectory, even as specific figures for the revised estimate were not disclosed. This forward-looking adjustment reflects a proactive stance by Delta to align its operational capacity with anticipated market opportunities driven by the insatiable demand for AI computational power and the continued electrification of transportation.