Driven by sustained AI server momentum, Hon Hai reported an 11% sales rise as global demand for Nvidia-backed systems continues.
Hon Hai Precision Industry Co., the primary manufacturer of Nvidia’s AI servers, recorded an 11.3% rise in October revenue, reflecting sustained demand for AI accelerators globally. The company reported revenue of NT$895.7 billion ($29 billion) for the month, maintaining the growth pace seen during the September quarter. Hon Hai is projected to post a 15% increase in sales for the December quarter, underscoring the continued strength of the AI-led infrastructure cycle.
As a key supplier in the fast-expanding AI ecosystem, the Taiwanese electronics giant, also known as Foxconn has benefited from accelerated spending by major technology companies including Meta Platforms and OpenAI, both of which are scaling their data center capacities. Hon Hai manufactures servers that house Nvidia’s high-performance chips, placing the company at the center of the global AI buildout.
Analysts note, however, that while tech firms are investing heavily in AI hardware, many have yet to demonstrate meaningful returns from these capital-intensive deployments.
Despite its AI momentum, Hon Hai still relies significantly on Apple Inc., assembling millions of iPhones each quarter. But with smartphone sales plateauing worldwide, the company is increasing its dependence on the AI boom to drive future revenue growth.
To support rising demand, Hon Hai is expanding AI server production capacity in the United States, with additional build-outs planned at its existing campuses in Wisconsin and Texas, executives said.
