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Hon Hai Sales Jump 11% on AI Server Boom, Boosting Nvidia Supply Chain
October 7, 2025 | I-Connect007 Editorial TeamEstimated reading time: 1 minute
Nvidia Corp.’s key server production partner, Hon Hai Precision Industry Co., reported an 11% year-on-year rise in quarterly sales on October 5, underscoring sustained global demand for artificial intelligence (AI) infrastructure, Bloomberg reported.
The Taiwanese manufacturer, also known as Foxconn Technology Group, reported revenue of NT$2.06 trillion (approximately US$67.7 billion) for the three months ended September, up 10.99% from the same period a year earlier and broadly in line with analyst forecasts. Quarterly, revenue climbed 14.47%.
“Cloud and networking products delivered strong growth, components and other products demonstrated significant growth, while smart consumer electronics and computing products slightly declined,” Hon Hai said.
The company’s performance reinforces bets on the longevity of the post-ChatGPT boom in AI infrastructure spending. Capital continues to pour into suppliers across the ecosystem, from chip makers and networking firms to server manufacturers like Hon Hai that assemble systems built around Nvidia chips. Some investors, however, have cautioned that valuations could prove unsustainable until AI services achieve mainstream adoption.
Hon Hai said revenue from servers more than doubled in the September quarter, offsetting softer sales of consumer electronics. The company stands to benefit from its role in OpenAI’s massive Stargate AI infrastructure project. In September, OpenAI announced plans to invest about US$400 billion to build five new U.S. data center sites in partnership with Oracle Corp. and SoftBank Group Corp.
While Apple Inc. remains a major client, Hon Hai is increasingly reliant on the AI surge. With backing from Apple and Nvidia, it is expanding AI server production in Wisconsin and Texas. Looking ahead, the company said, “Operations are expected to maintain sequential quarterly growth as AI server shipments continue to ramp up.” However, it warned that global political tensions and currency fluctuations “will need continued close monitoring.”
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