Nvidia supplier Hon Hai posts 40% sales jump on AI server demand

TL;DR

Hon Hai (Foxconn) reported a bigger-than-expected 40% jump in quarterly sales on AI server demand, with June revenue alone hitting NT$1.33tn. The Nvidia rack assembler expects shipments to keep climbing this quarter, making it one of the cleanest reads on the AI infrastructure boom.

Hon Hai, the Taiwanese contract manufacturing giant known as Foxconn, has reported a bigger-than-expected 40% jump in quarterly sales on demand for AI servers. The Nvidia supplier said in a statement on Sunday that AI rack shipments should maintain their momentum this quarter.

June revenue alone reached NT$1.33tn (roughly $45bn), up 21.6% year on year. The company added that consumer electronics demand is entering its usual peak season.

Hon Hai assembles the server racks that house Nvidia’s AI accelerators, alongside its long-standing role building iPhones. Chairman Young Liu has said AI server shipments are on track to double in 2026, with the company claiming roughly 40% of global AI rack assembly.

The results are one of the cleanest reads on the AI infrastructure boom, because Hon Hai gets paid whether or not the software ever earns its keep. Hyperscaler capex plans, with Big Tech doubling down on AI spending, flow almost directly into its order book.

Feeding the buildout

The company is also hedging beyond Nvidia. In June it joined Intel and SambaNova to build rackscale AI infrastructure on Xeon processors.

Upstream, the supply chain is straining, with Nvidia locking in SK Hynix for multi-year HBM4 supply and memory shortages rippling into consumer devices. The first quarter was already Foxconn’s highest ever, and the second has now topped expectations again.

The buildout’s costs are drawing political attention, including US legislation on data centre energy bills. For now, though, the AI economy’s surest profits sit with the company boxing it up.

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