AI demand remains strong, Hon Hai's sales in November increased by 25.5% year-on-year, and the visibility for the fourth quarter is "better than last month."

Hon Hai's November revenue hits a record high for the same period, with AI servers remaining the biggest engine.

A report released on Friday showed that Hon Hai's sales in November reached NT$844.276 billion, the highest level for the same period in history, a year-on-year increase of 25.5%, but a month-on-month decrease of 5.7%. In the first 11 months of this year, the cumulative sales reached NT$7,236.949 billion, a year-on-year increase of 16.6%.

Hon Hai stated: “AI cabinet shipments continue to increase, ICT products are entering the peak season, and visibility for the fourth quarter is better than the previous month.” The market expects that sales will grow by 14% in the three months ending in December.

Demand continues to surge, AI servers show "strong double-digit" growth

In November, Hon Hai's revenue grew by 25.5% year-on-year, driven mainly by the two product lines of "cloud networking" and "components and others":

Cloud networking is experiencing a surge in demand for AI servers, with customer cabinet orders maintaining momentum month-on-month, driving this category to achieve "strong double-digit" year-on-year growth.

Components and others benefited from a concentrated release of orders in automotive, industrial, and high-end components, significantly expanding shipment scale and contributing to high year-on-year growth.

Consumer electronics, although affected by unfavorable exchange rates and the high base from October's festive season, still maintained better actual end-user demand compared to the same period last year, ultimately holding the "year-on-year flat" bottom line.

The computer terminal category is nearing the end of customer inventory adjustments, with order momentum yet to recover, only showing a "slight decline," with the drop significantly narrowing compared to the first three quarters.

Hon Hai manufactures servers equipped with data center-level chips, playing a core role in the AI hardware supply chain centered around Nvidia's ecosystem. U.S. giants like Meta and Amazon are making large purchases of such equipment for training and inference models, directly boosting its performance. However, the commercialization path for AI technology remains unclear, and the market has frequently sounded alarms about overcapacity.

By assembling electronic devices including the iPhone, Hon Hai still derives a significant portion of its revenue from Apple. Currently, Hon Hai is expanding its production capacity in the U.S., adding AI server production lines in Wisconsin and Texas