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Foxconn reports large increase in sales, thanks to strong AI demand.

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Jinse Finance reports that the quarterly sales growth reported by Hon Hai, a server assembly partner of Nvidia, exceeded expectations, indicating sustained strong demand for artificial intelligence AI. Hon Hai said on Sunday that revenue in June increased by 52%. According to calculations, this means Hon Hai's sales in the June quarter grew nearly 40% to 2.51 trillion New Taiwan dollars (NTD) ($79 billion). Analysts had an average estimate of 2.37 trillion NTD. Hon Hai (also known as Foxconn) has established itself as a key player in AI hardware by assembling servers equipped with Nvidia accelerators. Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., and Microsoft Corp. are preparing to invest approximately $725 billion in AI this year, despite ongoing warnings about overcapacity and questions about how to monetize this technology. Since the outbreak of the Middle East conflict put enormous pressure on global shipping routes and natural gas prices, concerns have also grown about the rush to build power-hungry data centers.
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