Catenaa, Monday, September 05, 2026- Nvidia Taiwanese partner Hon Hai Precision Industry reported a 47% increase in sales in Q3 as AI spending continues to rise.
According to Bloomberg, the company reported $95.4 billion in sales revenue for the quarter ending in September, which is more than the market estimates, as analysts expected sales revenue to be $89 billion.
Hon Hai, a server assembly partner for Nvidia, has benefited from the spending spree around AI cloud infrastructure that emerged in the past two years.
Bloomberg report said that the company’s sales are seen as a check-in for the AI sector as investor concerns grow about overcapacity, rising debt levels and regulatory setbacks. Its share price is up about 10% since the beginning of the year.
Meanwhile, the company marked the first time it recorded over NT$1 trillion ($31 billion) in monthly revenue as September revenue increased 38% from a year earlier to NT$1.16 trillion($37 billion).
Hon Hai’s strong sales growth adds to the strong earnings forecast from Micron last week, indicating that AI investments continue to rise, despite calls to slow down on AI development by OpenAI CEO and Anthropic CEOs.
The company expects its AI-related operations to continue growing during the fourth quarter.
Combined with the traditional second-half peak season for electronics products, the company said in a statement that this should “support overall performance in line with current market expectations.”
Hon Hai, which is also called Foxconn, drives a significant chunk of revenue from manufacturing iPhones for Apple in its assembly facilities in China and India.
Bloomberg Intelligence said that Hon Hai is poised to sustain 25-35% revenue and earnings growth over the next few years, fueled by AI infrastructure demand.
It said that deep vertical integration and a global footprint provide an advantage amid rising server complexity and demand for localized production, and that the cloud business has surpassed smart consumer electronics as the company’s largest segment.
“Sales are set to climb further as capital spending expands from hyperscalers to neocloud, sovereign AI, and enterprise buyers,” Bloomberg Intelligence said.
