Nvidia Partner Hon Hai’s Sales Rise 11 Percent
Hon Hai Precision Industry Co., a key server production partner of Nvidia Corp., announced an 11percent increase in quarterly sales, indicating strong demand for the chips and servers essential for artificial intelligence development.
The firm, also referred to as Foxconn, announced a revenue of NT$2.06 trillion ($67.6 billion) for the quarter ending in September, which aligns closely with analysts' expectations. It also anticipated an increase in sales this quarter compared to the last three months, attributing this to robust AI demand.
Hon Hai's performance might bolster confidence in the viability of a post-ChatGPT surge in AI infrastructure development that has captivated major tech companies such as Meta Platforms Inc. and startups like OpenAI.
Worldwide, investors have invested funds into the providers of that expansion, from semiconductor manufacturers and networking companies to firms like Hon Hai that produce servers to accommodate Nvidia chips. However, certain investors have cautioned that valuations may be untenable until AI services genuinely achieve widespread adoption.
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Hon Hai’s preliminary revenue for 3Q25 increased by 11percent compared to the previous year, reaching a record for the quarter, propelled by the robust cloud and networking sector in response to rising AI infrastructure demands.
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This momentum is expected to continue into 4Q and assist in offsetting weaker consumer electronic revenue, which increased sequentially in 3Q due to the iPhone 17 launch but still declined YoY due to currency effects.
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The Taiwanese firm has stated it anticipates revenue from servers to more than double in the September quarter, while its consumer electronics division remains stagnant. It is set to benefit from its involvement in OpenAI’s Stargate AI infrastructure initiative: Last month, the most valuable startup globally announced intentions to commit around $400 billion to five new data center locations in the US in collaboration with Oracle Corp. and SoftBank Group Corp.