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(Bloomberg) — Hon Hai Precision Industry Co., the assembly partner of Nvidia Corp. and Apple Inc., reported better-than-expected sales growth last quarter as the AI infrastructure buildout continued apace.
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Hon Hai, also known as Foxconn, on Sunday said its revenue over the past three months was NT$2.13 trillion ($64.6 billion), up 15%, exceeding analyst expectations for a 13% rise. December brought in NT$654.83 billion, up 42%.
The company also said it expects significant sales growth for the first quarter of this year.
Hon Hai and other AI hardware suppliers in Taiwan have enjoyed a boost from massive spending on servers for data centers by the biggest US tech firms like Alphabet Inc. and Microsoft Corp. But the lack of a compelling use case for AI so far has been making investors nervous about when the expansion might slow.
Hon Hai expects revenue from its cloud business, which includes AI servers, to match sales from its iPhone-making division in 2025.
The AI market is important for Hon Hai’s effort to diversify its business away from Apple, whose iPhones are seeing muted growth. Apple has historically accounted for over half of the Taiwanese company’s sales.
Hon Hai also aims to break into the electric vehicle market, though that venture has yet to have any meaningful effect on its earnings. The company reached out to Renault SA about a tie-up with Nissan Motor Co., which Renault owns 36% of. For now, that pursuit is on hold as Nissan and Honda Motor Co. negotiate a merger, Bloomberg News reported.
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