Sales of NVIDIA Partner Hon Hai Surge 11% on Rising AI Demand

In Focus

• Hon Hai reports an 11% increase in third quarter sales revenue
• The company’s $67.6 billion revenue aligns with analyst projections
• Foxconn’s sales performance was driven its cloud and networking business

NVIDIA partner Hon Hai Precision Industry Co. has reported an 11% increase in quarterly sales. According to Yahoo Finance, this sales growth points to growing demand for chips and servers that tech companies need to develop AI.

Foxconn Projects Higher Q4 Sales

Also known as Foxconn, Hon Hai’s sales revenue stood at $67.6 billion in the July-September quarter, which aligns well with analyst projections. The contract manufacturing firm projected that Hon Hai sales will rise further this quarter. These projections point to a strong demand for AI.

“Hon Hai’s unaudited 3Q25 revenue rose 11% YoY to a record for the quarter, driven by the strong cloud and networking segment amid surging AI infrastructure demand. This momentum should carry into 4Q and help offset softer consumer electronic revenue, which rose sequentially in 3Q on the iPhone 17 launch but still dipped YoY on currency impact,” Analysts Steven Tseng and Sean Chen said.

In August 2025, Foxconn recorded a 27% profit surge in the second quarter due to growing demand for AI servers, which pointed to the global boom in artificial intelligence infrastructure.

Growing AI Infrastructure Investment

Hon Hai’s sales appear to boost AI outlook. The third quarter results point to sustainability of the AI boom as major tech companies like Meta Platforms and startups such as OpenAI invest in construction of data centers.

Globally, capital investment has been flowing into chip making and networking companies like Foxconn that manufacture servers that host NVIDIA chips. In August 2025, Meta secured $29 billion from two major financial firms, PIMCO and Blue Owl, to finance its data center in rural Louisiana. Meta’s data center expansion is driven by the company’s growing AI requirements.

The Taiwan-based chip maker expects revenue from servers to grow by over 100% in the fourth quarter as its consumer electronic units stagnate. Foxconn is set to reap big from OpenAI’s Stargate project after software giant Oracle announced a $300 billion investment into the project.

Oracle and SoftBank are working with OpenAI to build five new Stargate data centers in the U.S. The project also received a $100 billion in NVIDIA’s AI infrastructure investment to strengthen its GPU capabilities. However, some investors have raised concerns over high valuations. In their view, such valuations remain unsustainable until AI services go mainstream.

Hon Hai’s Sales Rise at a Glance

• Hon Hai’s sales growth points to growing demand for chips and servers
• Capital flow into chipmakers and networking firms like Foxconn has been on the rise
• Hon Hai has been diversifying production from China due to the U.S-China trade war
• Foxconn is boosting U.S. production capabilities to avoid Trump tariffs

Shifting Production to the U.S.

Foxconn continues to rely on Apple for a significant portion of its revenue. The company assembles devices such as the iPhone for the American tech giant. However, shifts in the geopolitical environment continue to threaten Foxconn’s assembling business. In May 2025, the world’s largest contract manufacturing company reduced its full-year revenue projections due to the U.S.-China trade way.

Foxconn has already started to diversify operations from China as it seeks to minimize losses. U.S. President Donald Trump plans to introduce 100% import duty on chip imports while exempting firms that shift production to the U.S.

Foxconn has already started to boost its U.S. production capabilities. In August 2025, the company announced that it will start producing data center equipment in the Ohio plant in partnership with Softbank. The company plans to increase AI server production in Texas and Wisconsin where it already runs production facilities.