Taiwanese contract manufacturer Compal had a weaker month in August, but its AI server business is booming — good news for investors betting on the AI buildout, bad news for anyone counting on a PC recovery.

• August sales dropped from July but were up 14.5% from a year earlier, with sales for the year so far up 18.3%.
• Laptop and PC shipments fell sharply, down 39% from last year, as higher prices cool consumer demand.
• AI servers are the bright spot — servers were about 5% of sales early in the year and are heading toward 10% for the full year.
• New server customer orders are being scheduled for the second half of this year and should ramp up in early 2027, including large AI server racks.

Outlook: Server revenue is expected to jump sharply this quarter and stay strong through year-end, while PC demand stays soft.