Nvidia partner Foxconn’s sales soar in sign AI demand persists

Hon Hai Precision Industry Co.’s revenue rose 26% in November, suggesting demand for Nvidia Corp. servers remains strong during an AI development boom.

The company, also known as Foxconn, reported revenue of NT$844.3 billion ($27 billion), accelerating from the previous month as well as the September quarter. It’s projected to report a 14% rise in sales for the three months ending in December.

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Hon Hai, which makes the servers that house chips in data centres, is one of the key players of an AI hardware industry centred on Nvidia. It’s benefited as US firms from Meta Platforms Inc. to Amazon.com Inc. deploy billions of dollars on the gear needed to train and operate AI, despite warnings of overcapacity given lingering uncertainty over how to monetize the technology.

The Taiwanese electronics producer still depends on Apple Inc. for a sizable portion of its revenue, assembling the iPhone and other marquee products for the US company. Hon Hai is now expanding capacity in the US, adding AI server production in Wisconsin and Texas, where the company operates established campuses.