Nvidia supplier Hon Hai's sales beat on continued AI demand

Nvidia supplier Hon Hai's sales beat on continued AI demand reports a strong quarterly performance from Hon Hai Precision Industry Co., also known as Foxconn. The company’s server-assembly partner of Nvidia said quarterly sales rose 40% year over year, exceeding analyst expectations, and projected AI rack shipments would keep gaining momentum in the current quarter. Hon Hai also expects overall operations to grow both quarter-on-quarter and year-on-year, citing peak season demand for information and communications technology products. Revenue reached NT$2.51 trillion (about $79 billion) for the three months ended June, versus an average estimate of NT$2.37 trillion. AI-related product demand offset a slight decline in consumer electronics and computing. The article notes large AI spending plans by Alphabet, Amazon, Meta, and Microsoft, plus ongoing data-center power and shipping pressures, while Hon Hai faces memory-chip shortages that executives say should not significantly affect demand for premium handsets and computers.