business
Hon Hai Sales Rose 40% on AI Demand but Consumer Electronics Fell Slightly
Hon Hai Precision Industry Co. posted revenue of NT$2.51 trillion for the quarter ending June, exceeding analyst estimates. AI server shipments supported growth despite softer consumer electronics sales.
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Hon Hai Precision Industry Co. reported a 40% year-on-year increase in quarterly sales for the three months ending June, with revenue reaching NT$2.51 trillion, or $79 billion. The figure surpassed the average analyst estimate of NT$2.37 trillion.
AI-related product demand drove the results and offset a slight decline in consumer electronics and computing products, Fortune reported. The company assembles servers that house Nvidia accelerators and serves as a key hardware partner for Nvidia Corp.
Shipments of AI racks are expected to maintain momentum in the current quarter, while demand for information and communications technology products enters peak season, the company stated.
Overall operations are projected to grow both quarter-on-quarter and year-on-year. , and Microsoft Corp. are allocating about $725 billion combined for AI spending this year. Hon Hai in March projected strong sales growth for 2026 on sustained AI momentum.
The company also assembles Apple Inc. iPhones and MacBooks and stands to benefit from reception of the iPhone 17 family. It faces a shortage of memory chips used across smartphones, PCs, and servers, though executives have said the crunch should not affect demand for premium products.
