Nvidia partner Hon Hai’s sales soar in sign AI demand persists

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

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

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 to Amazon.com deploy billions of dollars on the gear needed to train and operate AI, despite warnings of overcapacity given lingering uncertainty over how to monetise the technology.

The Taiwanese electronics producer still depends on Apple for a sizeable 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. BLOOMBERG

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