Foxconn Revenue Jumps 21.6% to NT$1.33 Trillion as AI Server Demand Builds

This article first appeared on GuruFocus.

Hon Hai Precision Industry Co. (HNHAF) reported a strong start to 2026, with revenue rising 21.6% in the first two months to a record NT$1.33 trillion ($41.9 billion), a performance that could reflect continued demand for artificial-intelligence servers built around chips from Nvidia (NASDAQ:NVDA). The Taiwanese manufacturer, widely known as Foxconn, has positioned itself as an important supplier in the AI hardware supply chain by assembling servers designed to house Nvidia accelerators used in large-scale computing environments.

The company said shipments of artificial-intelligence racks and servers continued to increase during the current quarter, suggesting momentum as major technology companies accelerate investment in AI infrastructure. Alphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) have earmarked more than $650 billion in spending this year on data centers and artificial-intelligence capacity, a wave of capital expenditure that could continue to support demand for the types of servers Hon Hai assembles.

On a monthly basis, revenue increased 8% in February, a slower pace that partly reflects the timing of the Lunar New Year holiday, which fell in February this year compared with January in 2025. Looking ahead, analysts on average are projecting Hon Hai’s revenue could rise about 28% in the first quarter, while the company said its quarterly performance is expected to align with market expectations even as some observers continue to raise questions about potential overcapacity and the longer-term monetization of AI technology.