Hon Hai posts 40% quarterly revenue surge as AI server demand powers record growth

Hon Hai sales jump 40% on AI server demand

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.

Key Nvidia Supplier Foxconn Posts 40% Q2 Revenue Jump on AI Server Demand Key Nvidia Supplier Foxconn Pos

Taiwan's Foxconn, the world's largest contract electronics maker, said it expects its overall operations to grow on a quarterly and annual basis after reporting a 40% year-on-year rise in second-quarter revenue. Strong ⁠AI demand drove revenue growth for its cloud and networking products division, the company said. Smart consumer electronics, which include iPhones, posted "significant" growth, the company said. Revenue rose 52% year-on-year to T$821.8 billion in June, a record for the month. Foxconn in March projected strong sales growth in 2026, fueled by sustained AI momentum, Bloomberg reported. The company's sales are driven by assembling Apple's iPhones and MacBooks. "Looking ahead to the third quarter, AI rack shipments are expected to maintain growth, and operations will gradually gain momentum as ICT products enter peak season," the Taiwan-based company said. "The outlook for overall operations expects both QoQ and YoY growth. Global Political Risks Loom Foxconn, known as Hon Hai Precision Industry Co. warned it remains necessary to monitor the "volatile" global political and economic situation. The Middle East conflict has put pressure on supply chains with the disruption of shipping through the Strait of Hormuz. "The conflict in Iran has thrown global supply chains into disarray," the Bank for International Settlements said on June 28. "Shortages of nitrogenated fertilizers, helium and petrochemical inputs have threatened production of food, semiconductor and manufactured goods." Foxconn and other major tech manufacturers are confronting mounting bottlenecks in electricity supply, advanced chips and critical grid infrastructure. The rapid global buildout of AI systems has intensified pressure on power networks and semiconductor capacity, complicating production planning across the sector. Hyperscalers are rapidly expanding data‑center footprints worldwide, driving sustained orders for AI servers, power systems and advanced thermal‑management equipment. The company's shares rose 4.3% this year, underperforming the 61.5% rise for the Taiwan market. The stock closed up 0.6% on Friday ahead of the revenue data release. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Foxconn second-quarter revenue jumps, company cautions on geopolitics

TAIPEI, July 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker, reported a 39.8% year-on-year rise in second-quarter revenue that beat market forecasts on strong demand for AI products, though it cautioned about "volatile" global politics. Revenue for Nvidia's biggest server maker and Apple's top iPhone assembler jumped to T$2.513 trillion ($78.71 billion) in the April-June quarter, Foxconn said in a statement on Sunday. That was above a T$2.372 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate. Strong AI demand led to robust revenue growth for its cloud and networking products division, while smart consumer electronics, which includes iPhones, posted "significant" growth, the company said. June revenue alone rose 52.1% year-on-year to T$821.8 billion, a record for that month. Operations are expected to grow both quarter-on-quarter and year-on-year in the third quarter, with AI racks maintaining a growth trend, the company said. However, "it remains necessary to monitor the impact of the volatile global political and economic situation", Foxconn said, without elaborating. Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts. The company's shares have gained 4.3% this year, underperforming the 61.5% rise for the Taiwan market. The stock closed up 0.6% on Friday ahead of the revenue data release. The benchmark index ended the day flat. ($1 = 31.9260 Taiwan dollars) (Reporting by Ben Blanchard; Editing by William Mallard and Jamie Freed)