Nvidia collaborator Hon Hai sees a 22% increase in sales amid worldwide AI expansion

Hon Hai Reports Strong Revenue Growth Driven by AI Server Demand

Photo credit: An Rong Xu/Bloomberg

Hon Hai Precision Industry Co. experienced a significant 21.6% increase in revenue over the first two months of 2026, reflecting robust demand for Nvidia-powered servers that are essential for advancing artificial intelligence worldwide.

During this period, the company achieved a record-breaking NT$1.33 trillion (approximately $41.9 billion) in sales. Industry experts anticipate that revenue will continue to rise, with forecasts suggesting a 28% increase for the first quarter of 2026. February’s growth was a more modest 8% compared to the previous month, largely due to the Lunar New Year holiday occurring in February this year, rather than January as in 2025.

Shipments of AI servers and racks have continued to rise this quarter. Hon Hai, also recognized as Foxconn, stated that its first-quarter performance is expected to meet prevailing market predictions.

The company has become a major force in AI hardware by assembling servers equipped with Nvidia accelerators. Demand remains high as leading tech firms such as Alphabet, Amazon, Meta, and Microsoft plan to invest over $650 billion this year, even as concerns about potential overcapacity and the challenge of monetizing AI persist.

Reporting assistance by Cindy Wang.

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