Hon Hai Precision Industry, the Taiwanese electronics manufacturing giant better known as Foxconn, reported a stronger-than-expected 40% jump in quarterly sales as AI demand continued to accelerate. Hon Hai Precision Industry (HNHPF) said revenue rose to NT$2.51 trillion, or $79 billion, in the three months through June, beating analysts' average estimate of NT$2.37 trillion. The company said AI-related products helped drive growth, offsetting a slight decline in consumer electronics and computing products.
The company has become an important hardware supplier in the AI boom by assembling servers that house Nvidia accelerators. Hon Hai said AI rack shipments are expected to maintain momentum in the current quarter, while demand for information and communications technology products is entering peak season. The company also said overall operations are expected to grow both quarter-on-quarter and year-on-year, suggesting AI infrastructure demand may still be running ahead despite growing concerns about data-center overcapacity and monetization.
For investors, the update adds another signal that AI spending remains a major growth driver across the hardware supply chain. Alphabet NASDAQ:GOOG, Amazon.com NASDAQ:AMZN, Meta Platforms NASDAQ:META and Microsoft NASDAQ:MSFT are setting aside about $725 billion for AI spending this year, keeping suppliers such as Hon Hai closely tied to the broader AI capital-expenditure cycle. Hon Hai had already projected strong sales growth in 2026, supported by sustained AI momentum, while its Apple iPhone and MacBook assembly business could also benefit from any positive reception for the iPhone 17 family, even as the company continues to navigate memory-chip shortages across smartphones, PCs and servers.