Alchip Technologies (3661) Q2 2026 earnings summary

Executive summary

• Q2 revenue reached $241.7 million (NT$7,639.8 million), up 82.6% quarter-on-quarter but down 16.5–18.7% year-on-year.

• Net income was $51.8 million (NT$1,638.6 million), with EPS of $20.01 (NT$20.01), both up year-over-year.

• Significant growth was driven by the N3 AI accelerator ramp, which entered mass production and began shipping to a major North American cloud provider.

• Automotive ADAS program in China remained a key revenue contributor, with next-generation projects advancing.

• Gross margin improved to 35% in Q2, though it declined sequentially due to production mix.

Financial highlights

• Operating income for Q2 was $52.1 million (NT$1,646.7 million), up 20.5% quarter-on-quarter and 38.7% year-on-year.

• Gross profit for Q2 was $84.2 million, up 26.8% sequentially and 36.7% year-over-year.

• Revenue mix: 50% HPC, 16% networking, 32% consumer, 1% each from other markets.

• North America contributed 51% of Q2 revenue, up from 23% in Q1, due to N3 accelerator shipments.

• Cash and cash equivalents at June 30 were NT$39,405.2 million, up from NT$31,049.3 million a year ago.

Outlook and guidance

• Q3 and Q4 are expected to deliver record-high revenue and earnings, with sequential growth anticipated.

• Gross margin for the second half of the year is projected to be in the low to mid-20% range.

• Operating margin is targeted to be in the high teens as scale increases.

• Growth momentum is expected to sustain for at least the next three to four years, driven by AI and next-generation design pipeline.

• Management expects continued volatility in the semiconductor sector due to rapid technology upgrades and short product life cycles.