Hon Hai reports stronger-than-expected sales, suggesting sustained AI demand

https://www.taipeitimes.com/News/biz/archives/2026/07/06/2003860281

Publish Date: 2026-07-05 12:00:00

Nvidia Corp’s server assembly partner Hon Hai Precision Industry Co (鴻海精密) reported a stronger-than-expected increase in quarterly sales, a sign of sustained artificial intelligence (AI) demand.

Revenue grew 52.11 percent year-on-year to NT$821.8 billion (US$25.74 billion) last month, the company said in a statement yesterday.

Last month’s revenue reached the highest June level in the company’s history, but the figure remained 4.38 percent lower than previous month’s NT$859.41 billion, it said.

Photo: Cheng Yu-chen, AFP

Hon Hai’s sales for the June quarter rose 39.83 percent year-on-year to NT$2.51 trillion, the highest ever for the same period and 18.02 percent higher than the previous quarter’s NT$2.13 trillion. Analysts on average had expected NT$2.37 trillion.

The company said the cloud and networking products — primarily servers — electronic components, computing products and smart consumer electronics showed strong annual growth in sales during the second quarter.

For this quarter, the company expects revenue to show quarterly and annual increases on the back of robust AI rack shipments and strong seasonal demand for information and communications technology products, its statement said.

Hon Hai, also known as Foxconn Technology Group (富士康), has established itself as a key AI hardware player by assembling servers that house Nvidia accelerators. Alphabet Inc, Amazon.com Inc, Meta Platforms Inc and Microsoft Corp are setting aside about US$725 billion for AI spending this year, even as warnings abound about overcapacity and questions about how to monetize the technology persist.

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