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Hon Hai Precision Industry Co.\u2019s June-quarter sales outperformed analysts\u2019 rising expectations on the strength of the company\u2019s growing AI server business.<\/p>\n
The iPhone assembler<\/a>, also known as Foxconn<\/a>, said Friday that its revenue in June was NT$490.7 billion ($15.1 billion), making for a total of NT$1.55 trillion for the quarter, up 19%. An average of analyst estimates pointed to a 13.8% rise, with expectations growing after Hon Hai said a month earlier that it expected the AI business to help it beat estimates for the quarter.<\/p>\n Hon Hai\u2019s Taipei-traded shares have more than doubled this year and\u00a0hit new highs<\/a>\u00a0in June on hopes the company can capitalize on the AI boom. It had gone through a tough 2023, as sales shrank due to moribund demand for the consumer electronics it assembles. But the company\u2019s rapidly adding revenue from orders for artificial intelligence servers and other data center gear, diversifying away from the mature business of making smartphones.\u00a0<\/p>\n \u201cThe third quarter is expected to generate growth compared to the second quarter and the same period last year,\u201d Hon Hai said in a statement accompanying its monthly sales release on Friday.<\/p>\n Excitement about Hon Hai\u2019s role in the AI hardware market helped its shares breach the NT$200 level that founder Terry Gou had pledged to achieve in 2016. The AI boom has also brought much focus to Taiwan this year, making the latest Computex event a huge success with CEOs from the biggest US chipmakers all coming to woo key suppliers and data center equipment makers.<\/p>\n<\/div>\nSubscribe to the CEO Daily newsletter to get global CEO perspectives on the biggest stories in business. Sign up for free<\/a>.<\/div>\n<\/div>\n