Taiwanese electronics manufacturer Hon Hai Precision Industry, also known as Foxconn, reported stronger-than-expected quarterly revenue as demand for AI servers and cloud infrastructure remained high.

Sales for the quarter ended in September rose 47% to NT$3.03 trillion (US$95.1 billion), beating analysts’ estimate of NT$2.83 trillion (US$88.8 billion).

Hon Hai assembles servers for Nvidia and still gets a significant share of revenue from making iPhones for Apple. Investors watch the company as a barometer for AI infrastructure demand.

Peer results also point to strength in the sector, with Wistron reporting strong AI server demand and quarterly profit up 128%.

A January S&P Global preview projected higher capital spending at Microsoft and Meta, partly driven by AI infrastructure.

The sector also faces US restrictions on exports of Nvidia’s most advanced AI chips to China, though the available information does not show a direct impact on Hon Hai.

🔗 Source: Bloomberg

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