issued Sunday, July 5, 2026 · 05:36 PM
NVIDIA’s server assembly partner Hon Hai Precision Industry reported stronger-than-expected quarterly sales growth, showing continued demand for artificial intelligence.
The company announced on Sunday (July 5) that June sales increased by 52%. This means Hon Hai’s revenue rose about 40% to NT$2.51 trillion (US$79 billion) in the second quarter, based on Bloomberg calculations.
Analysts’ average estimate was NT$2.37 trillion.
Hon Hai, also known as Foxconn, has established itself as a major player in AI hardware by assembling servers powered by Nvidia accelerators.
Alphabet, Amazon.com, Meta Platforms and Microsoft have set aside about $725 billion in AI spending this year, despite numerous warnings about overcapacity and persistent questions about how to monetize the technology.
Concerns about a rush to build power-hungry data centers have also grown since the outbreak of conflict in the Middle East, putting pressure on global shipping routes and gasoline prices.
In March, the Taiwanese company predicted strong sales growth in 2026, driven by continued momentum in AI. The company derives a significant portion of its revenue from assembling Apple’s iPhones and MacBooks, and stands to benefit if its latest iPhone 17 product family is well received.
But like many electronics manufacturers, Hon Hai is facing a shortage of memory chips used in products ranging from smartphones to PCs and servers.
Executives said the weak demand will not significantly impact demand for the high-end cellphones and computer products the company makes for major customers. bloomberg
