Hon Hai Reports 29.7% Sales Growth Amid Strong AI Demand
Nvidia Partner Hon Hai’s Sales Meet Estimates on Solid AI Demand
Mint
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Hon Hai Precision Industry Co., the world's largest electronics manufacturer, reported a 29.7% increase in quarterly sales, reaching NT$2.13 trillion (approximately $66.5 billion). This growth reflects sustained demand for AI hardware, despite potential challenges from the ongoing Middle East conflict affecting global shipping and gas prices.
- 01Hon Hai's quarterly sales rose by 29.7% to NT$2.13 trillion.
- 02The growth is driven by strong demand for AI server hardware.
- 03Concerns exist over the impact of the Middle East conflict on global supply chains.
- 04Hon Hai expects continued sales growth in the upcoming quarters.
- 05The company benefits from assembling servers with Nvidia accelerators and strong iPhone sales.
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Hon Hai Precision Industry Co. reported a 29.7% increase in quarterly sales, reaching NT$2.13 trillion (about $66.5 billion), reflecting robust demand for AI hardware. Analysts had anticipated sales of NT$2.14 trillion. The surge comes amid rising concerns regarding the Middle East conflict, which is impacting global shipping routes and gas prices. Despite these challenges, Hon Hai's Chairman Young Liu expressed optimism for continued sales growth, particularly driven by AI server rack shipments and the deployment of ASIC-based server projects later this year. The company is also poised to benefit from strong sales of the latest iPhone 17, although it faces challenges from a persistent shortage of memory chips. Overall, Hon Hai's deep vertical integration and global reach position it favorably in a complex and demanding market.
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Hon Hai's sales growth could lead to more job opportunities in Taiwan's tech sector, especially in AI and electronics manufacturing.
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