Nvidia Partner Hon Hai’s Sales Rise 11% After Strong AI Demand
(Bloomberg) – Nvidia Corp.’s major server production partner Hai Hai Precision Industry Co. reported 11% growth in three -month sales and pointed to a healthy demand for AI infrastructure.
According to a company statement, income income in line with the projections of analysts was 2.06 trillion NT ($ 67.8 billion) in three months.
Hon Hai’s results can lose more weight on bets on the sustainability of the explosion after chatgpt in artificial intelligence infrastructure structure. Globally, Capital has poured from chipsets and network companies to companies such as Hon Hai, to companies that allow servers to host Nvidia chips to the suppliers of a presentation. Some investors warned that the values are unsustainable until the AI services were really mainstream.
Hon Hai, also known as Foxconn, is connected to Apple Inc. for a large part of its income by combining the US customer’s gadgets, including iPhones. However, as this sales plateau, AI explosion has grew more and more.
Taiwanese company, September quarter of the servers expecting to double the income, consumer electronics business stagnated, he said. Ready to win Openai’s role in the Stargate AI Infrastructure Project. Last month, Openai, Oracle Corp. and Softbank Group Corp. Five new US Data Central Sites in partnership with it has planned to invest about $ 400 billion.
However, seismic geopolitical changes offer threats to Hon Hai’s business. In May, the US-China trade war, which expressed potential sprinklers from the Full year, cut off income guidance. It removes the production footprint from China to balance the damage.
Since then, President Donald Trump has planned to offer 100% tariffs in semiconductor imports, although he promised to exempt companies that carry production to the USA.
With the support of Apple and Nvidia, Hon Hai expands the capacity in the US. Managers said the company will add more AI server production to Wisconsin and Texas, where the company runs existing campuses.
Read: Foxconn will run Softbank’s Stargate AI Server site in Ohio
There are more stories like this Bloomberg.com
