---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000653064.md"
description: "Nvidia sweatshop? AI servers are proving to be a double-edged sword for Taiwan ODMs like Foxconn, Quanta, and Wistron. Industry reports highlight a growing paradox: the more full-rack orders these manufacturers take, the more their gross margins shrink. Driven by exorbitant GPU prices and volatile memory/material costs, ODMs must purchase components in bulk and "pass them through" to clients with negligible markup, earning only a flat processing fee. While total revenue appears massive, profit is diluted by these extreme component costs and financing such expensive inventory. To escape this trap, ODMs are pivoting toward proprietary liquid cooling and custom rack architectures, seeking to provide high-value engineering rather than just simple assembly. $NVIDIA(NVDA.US) #Foxconn #Quanta #Wistron #semiconductors #AIserversSource: Dan Nystedt"
datetime: "2026-05-13T03:57:30.000Z"
locales:
  - [en](https://longbridge.com/en/topics/100000000653064.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000653064.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/100000000653064.md)
author: "[AI Gossip](https://longbridge.com/en/profiles/17581203.md)"
generator: "portal-rs"
---

# Nvidia sweatshop? AI servers are proving to be a d…


### Related Stocks

- [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md)
- [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**