Strong demand for AI! Hon Hai's sales in January reached NT$ 730.04 billion, a year-on-year increase of 35.5%
Hon Hai Precision Industry Co., Ltd. achieved revenue of NT$ 730 billion in January, a year-on-year increase of 35.5%, demonstrating strong resilience in AI infrastructure demand. As a core partner of NVIDIA, its significant performance growth directly reflects the robust purchasing power of global data center servers, with expectations for a 28% increase in sales in the first quarter
Hon Hai Precision Industry Co., Ltd. saw a significant increase in revenue in January, providing the latest evidence of the global AI infrastructure construction boom. The performance of this key partner of NVIDIA shows that despite market concerns about the return on AI investments, the demand for data center equipment remains resilient.
On February 5th, Hon Hai announced that its revenue in January reached NT$ 730 billion (US$ 23 billion), a year-on-year increase of 35.5%. As a major manufacturer of data center servers, Hon Hai's sales data is regarded as an important indicator of AI hardware demand.
The company expects sales for the three months ending in March to grow by 28%. It is worth noting that the year-on-year comparison may be affected by the Lunar New Year holiday.
AI Demand Resilience Exceeds Expectations
Hon Hai is a key link in the NVIDIA-centered AI hardware supply chain. The company focuses on manufacturing servers that accommodate chips, which are core components of data centers. As the global wave of AI development continues, Hon Hai directly benefits from technology companies' ongoing investments in AI infrastructure.
Despite warnings from the industry about overcapacity, Hon Hai's revenue growth indicates that the demand for AI servers remains resilient. U.S. technology companies are deploying the hardware needed for AI on a large scale, driving continued procurement of data center servers. This intensity of demand has somewhat alleviated market concerns about an AI investment bubble
