Nvidia supplier Hon Hai reports surging sales on solid AI demand

Published Sun, Jul 5, 2026 · 05:36 PM

NVIDIA’S server assembly partner Hon Hai Precision Industry reported a stronger-than-expected increase in quarterly sales, a sign of sustained artificial intelligence demand.

Revenue grew 52 per cent in June, the company said on Sunday (Jul 5). That indicates Hon Hai’s sales for the second quarter rose almost 40 per cent to NT$2.51 trillion (US$79 billion), based on Bloomberg calculations.

Analysts on average had expected the figure to come in at NT$2.37 trillion.

Hon Hai, also known as Foxconn, has established itself as a key AI hardware player by assembling servers that house Nvidia accelerators.

Alphabet, Amazon.com, Meta Platforms and Microsoft are setting aside about US$725 billion for AI spending this year, even as warnings abound about overcapacity and questions about how to monetise the technology persist. 

Concerns about a rush to build power-guzzling data centres have also grown since the start of conflict in the Middle East, which has piled pressure on global shipping routes and gas prices.

The Taiwanese company in March projected strong sales growth in 2026, fuelled by sustained AI momentum. It derives a significant chunk of sales from assembling Apple’s iPhones and MacBooks, and is in a position to benefit from any positive reception for the latest iPhone 17 product family.

But like many electronics manufacturers, Hon Hai faces a shortage of memory chips used in a wide range of products from smartphones to PCs and servers.

Executives have said the crunch should not significantly impact demand for the premium handset and computer products the company makes for major customers. BLOOMBERG