--- title: "Hon Hai Profit Jumps 19% As AI Server Demand Accelerates" type: "News" locale: "en" url: "https://longbridge.com/en/news/286444429.md" description: "Hon Hai Precision Industry reported a 19% increase in first-quarter profit, reaching NT$49.9 billion, driven by strong demand for AI servers. The company anticipates substantial sales growth this year, with the US becoming its largest AI server production hub. Despite margin pressures, the AI server cycle is expected to help offset rising costs. First-quarter sales rose by 30%, totaling NT$2.1 trillion, supported by AI demand in cloud services. Investors are considering the impact of AI momentum, potential iPhone 17 sales, and supply-chain risks from the Middle East crisis." datetime: "2026-05-14T16:17:46.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286444429.md) - [en](https://longbridge.com/en/news/286444429.md) - [zh-HK](https://longbridge.com/zh-HK/news/286444429.md) --- # Hon Hai Profit Jumps 19% As AI Server Demand Accelerates Hon Hai Precision Industry (HNHPF), Nvidia Corp.'s major server assembly partner, reported stronger-than-expected first-quarter profit as AI hardware demand continued to support one of the most important links in the chip supply chain. Net income for the quarter ended in March rose 19% to NT$49.9 billion, or $1.6 billion, above the NT$48.4 billion analysts had expected. The result followed a previously reported 30% increase in sales, broadly in line with expectations, suggesting that demand for AI servers remains a major force behind Hon Hai's current growth cycle. Management said Hon Hai still expects sales to expand substantially this year, with AI remaining a key growth driver. Rotating Chief Executive Officer Michael Chiang said the US will gradually become the company's largest AI server production hub, largely because most of the major cloud service providers it supplies are based there. Hon Hai, also known as Foxconn, has established itself as a key AI hardware player by assembling servers that house Nvidia accelerators, as Alphabet, Amazon.com, Meta Platforms and Microsoft lift capital spending plans and set aside $725 billion for AI this year. The stronger AI server cycle could help Hon Hai offset higher costs, though margin pressure remains a possible risk as AI servers become a larger part of the revenue mix. Bloomberg Intelligence said first-quarter sales climbed about 30% and lifted quarterly revenue to NT$2.1 trillion based on monthly disclosures, with growth anchored by AI server demand in cloud and networking, despite a partial shift to a revenue-suppressing consignment model. At the same time, Hon Hai still gets a significant chunk of sales from assembling Apple's iPhones and MacBooks, leaving investors to weigh AI server momentum, possible iPhone 17 product-family upside and supply-chain risks tied to the Middle East crisis. ### Related Stocks - [601138.CN](https://longbridge.com/en/quote/601138.CN.md) - [HNHPF.US](https://longbridge.com/en/quote/HNHPF.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Hon Hai Subsidiary Exits Linker Vision Stake in NT$672 Million Share Sale](https://longbridge.com/en/news/286423043.md) - [SanDisk (SNDK) Delivered a Record Quarter. The AI Storage Bull Case Is Intact](https://longbridge.com/en/news/286052888.md) - [Nextech3D.ai Launches Krafty Labs AI Event Marketplace | NEXCF Stock News](https://longbridge.com/en/news/286090006.md) - [These 3 engineering roles are now converging, says EY's AI leader](https://longbridge.com/en/news/286538922.md) - [Cerebras' 109% day-one rally kicks off a year of AI mega-IPOs](https://longbridge.com/en/news/286453281.md)