Taiwanese Gigabyte Technology Is Gaining From Cryptocurrency Mining

Background

Gigabyte Technology Company Limited is a Taiwan-based company founded in 1986.

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It engages in design and manufacture of motherboards, graphics cards, desktop PCs, laptops, smartphones as well as other computing products. It also develops advanced computer peripherals for professional gaming.

Business Description

Gigabyte’s focus has shifted towards VGA, a graphical component used in computers. Its high-performance VGA are suitable for gaming, virtual reality (VR) applications and cryptocurrency mining.

Despite a stronger emphasis on other segments, Gigabyte is still the second largest manufacturer of motherboards by market share. Its emphasis on R&D allows for quality products aimed at high-end systems.

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The company supplies integrated server systems as well as individual components. It accounts for 8% of total revenue and grew 20% in 2017 YoY. It also provides support services to complement its products.

Gigabyte has a large variety of other products, including laptops, gaming peripherals, smartphones as well as other PC components. Most products are designed for professional gaming with dedicated features.

In 2017, Nvidia (NVDA US) accounted for almost 30% and Intel (INTC US) just under 20% of Gigabyte’s revenue. These two companies also serve as primary source of supply for raw materials for Gigabyte’s.

Leadership

Pei-Chen Yeh is the founder of Gigabyte and has been serving as President and Chairman since the company was founded in 1986. He graduated from the Industrial Technology Research Institute, Taiwan in Engineering and from Ming Shin Technology College, Taiwan in Electronic engineering.

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World Class Benchmarking

Profitable Growth has improved notably to #2 from #5 in the past 12 months, which is in the top 138 out of 690 large Info Tech companies worldwide.

Both Profitability and Growth improved to #2 in the past 12 months as well.

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Asset utilization has consistently ranked strongly at #2. Profit margin has continuously remained around average, however, there was a slight improvement in the past 12 months.

Sales growth has developed from #9 in 2015 to rank at #2 in the most recent period. Margin change saw an improvement to #3 from #6 in the past 12 months.