Hon Hai Precision Industry reported stronger-than-expected quarterly sales on October 5. It highlights continued spending on artificial intelligence infrastructure worldwide. The Taiwan-based company recorded TWD 3.03 trillion in revenue for the three months ended September.
The figure was 47% higher than the same period a year earlier. Analysts had expected average revenue of TWD 2.83 trillion. The result points to sustained demand for hardware used in expanding AI infrastructure.
Hon Hai is also known as Foxconn and serves as a major server assembly partner for Nvidia. The company benefited from the global expansion of cloud infrastructure over the past two years.
The latest results follow an upbeat outlook from Micron Technology last week. Together, the developments provide further evidence that companies are continuing to increase spending on AI hardware.
Hon Hai’s cloud and networking business became an important growth area as demand for AI servers increases. The company’s wider operations also include consumer electronics, with Apple among its major customers.
Hon Hai continues to manufacture iPhones at facilities in China and India. Apple has also been expanding its supplier base, including partnerships with companies such as Luxshare Precision Industry.
Hon Hai’s performance is being watched closely as investors assess whether current AI infrastructure spending can continue. Concerns around excess capacity, higher debt and regulatory risks have increased across the sector.
Despite those concerns, Bloomberg Intelligence expects Hon Hai to deliver annual revenue and earnings growth of 25% to 35% over the next few years. Its analysis points to AI infrastructure demand, global production capacity and the increasing complexity of server systems as key factors supporting growth.
The company’s cloud business has also overtaken smart consumer electronics as its largest segment. Spending is expected to broaden from major cloud providers to newer cloud companies, sovereign AI projects and enterprise customers. Hon Hai shares have gained about 10% since the start of 2026, according to the Bloomberg report.
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