Hon Hai Precision Industry Co posted a 54.2% jump in July sales to NT$946.5 billion (US$29.34 billion), underscoring resilient demand for artificial intelligence (AI) infrastructure and Nvidia-powered servers.
According to Bloomberg, the company, also known as Foxconn, expects shipments of AI server racks to maintain their momentum in the current quarter, while demand for information and communications technology products enters its peak season.
Hon Hai has strengthened its position as a major AI hardware supplier by assembling servers fitted with Nvidia accelerators. Its April-to-June revenue had already risen a stronger-than-expected 40%.
Analysts expect the Taiwanese manufacturer’s sales to grow 31.2% in the three months ending September.
Demand is being supported by aggressive data-centre spending from Alphabet, Meta Platforms, Microsoft and Amazon, which have collectively committed nearly US$2.4 trillion to investments over the coming years.
However, concerns over potential overcapacity and uncertain returns from AI expenditure have weighed on technology stocks. Hon Hai shares have fallen about 16% from their early-June peak, although they remain around 12% higher year to date.
