Cisco Systems forecast quarterly gross margins below market expectations, citing higher memory chip costs. The weaker margin outlook overshadowed stronger-than-expected results and sent shares down about 7% in extended trading.

Taiwan's leading original design manufacturers (ODMs) are entering 2026 at different stages of transition, as efforts to expand into AI servers and automotive electronics intersect with seasonal softness and shifting demand in legacy businesses. January 2026 results from Pegatron and Compal Electronics illustrate how the two companies are navigating that shift with contrasting near-term outcomes.

Foxconn held a two-day year-end outlook conference starting February 9 at its Huyue headquarters in Tucheng. The event brought together nearly 1,000 employees from Taiwan and overseas, along with dozens of chairmen, general managers, and senior executives from consolidated subsidiaries and affiliated companies to review 2025 and outline the 2026 outlook. Business group leaders also gathered to exchange operational updates and reinforce group coordination.

Taiwan's server supply chain is entering what suppliers expect to be its strongest first quarter on record. ODMs, including Quanta, Wistron, Inventec, Wiwynn, Foxconn, and MiTAC, reported high double-digit year-over-year revenue growth in January 2026, with Wistron and Wiwynn achieving triple-digit expansion. Suppliers expect first-quarter demand to remain above seasonal norms, driven by concurrent strength in AI and general-purpose servers.

Taiwanese ODM Wistron is projecting robust growth in 2026, with confidence extending beyond revenue to profitability. Jeff Lin, Wistron's president, said the company anticipates strong performance across the board. In response to concerns that Nvidia's procurement strategies might compress supply chain margins, Lin declined to comment on specific clients but emphasized that Wistron's business remains stable and its profitability intact.