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Hon Hai’s revenue soars 24% as AI server demand boosts tech manufacturer
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Hon Hai’s first quarter 2025 revenue jumped 24.2% year-over-year to NT$1.64 trillion ($49.8 billion), marking its fastest growth since 2022 amid strong data center demand. As a key supplier for both Nvidia’s AI servers and Apple’s iPhones, the company’s performance offers a bright spot in the artificial intelligence sector even as global markets grapple with expanding tariff-induced losses. This revenue surge signals continued momentum in AI infrastructure spending despite broader economic headwinds.

The big picture: Hon Hai Precision Industry Co. outperformed expectations with substantial first-quarter growth, highlighting the resilience of AI-related demand while other tech segments face challenges.

  • The company’s revenue reached NT$1.64 trillion ($49.8 billion), coming in just shy of analysts’ average estimate of NT$1.65 trillion.
  • This 24.2% growth represents the fastest pace of expansion for the Taiwanese manufacturing giant since 2022.

Why this matters: Hon Hai’s performance serves as a barometer for both the AI server market and consumer electronics, given its strategic position supplying industry leaders.

  • As the main manufacturer of Nvidia’s AI servers, Hon Hai’s strong growth suggests continued robust investment in AI infrastructure.
  • The company also produces Apple’s iPhones, making its results a significant indicator of broader tech manufacturing health.

Behind the numbers: The substantial growth appears primarily driven by data center demand rather than consumer electronics, suggesting AI computing infrastructure remains a high-priority investment area for tech companies.

  • This growth comes despite challenging global market conditions, with tariff-induced losses expanding in various regions.
  • The contrast between Hon Hai’s AI-adjacent business performance and broader market challenges highlights the divergent trajectories within the tech sector.
Nvidia Partner Hon Hai’s Sales Surge With Data Center Boom

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