The company known also as Foxconn reported revenue of NT$2.06 trillion ($67.6 billion) for the three months to September, generally in line with analysts’ projections. It also projected a rise in sales this quarter from the previous three months, citing strong AI demand.
Hon Hai’s results may lend weight to bets on the sustainability of a post-ChatGPT boom in AI infrastructure construction that’s swept up big tech firms like Meta Platforms Inc. and startups including OpenAI. Globally, investors have poured capital into the suppliers of that rollout, from chipmakers and networking firms to companies like Hon Hai that make servers to house Nvidia chips. Still, some investors have warned that valuations are unsustainable until AI services truly go mainstream.
What Bloomberg Intelligence Says
Hon Hai’s unaudited 3Q25 revenue rose 11% YoY to a record for the quarter, driven by the strong cloud and networking segment amid surging AI infrastructure demand. This momentum should carry into 4Q and help offset softer consumer electronic revenue, which rose sequentially in 3Q on the iPhone 17 launch but still dipped YoY on currency impact.
– Steven Tseng and Sean Chen, analysts
Click here for the research.
The Taiwanese company has said it expects revenue from servers to have more than doubled in the September quarter while its consumer electronics business stagnates. It’s poised to gain from its role in OpenAI’s Stargate AI infrastructure project: Last month, the world’s most valuable startup unveiled plans to invest about $400 billion in five new US data center sites in partnership with Oracle Corp. and SoftBank Group Corp.
Foxconn still depends on Apple Inc. for a sizable portion of its revenue by assembling the US client’s gadgets including iPhones. But as those sales plateau, it’s grown increasingly reliant on the AI boom.
Yet seismic geopolitical shifts present threats to Hon Hai’s business. In May, it cut its full-year revenue guidance, citing potential fallout from the US-China trade war. It’s already diversifying its manufacturing footprint away from China in a bid to offset the damage.
President Donald Trump has since declared plans to roll out a 100% tariff on semiconductor imports, though he’s promised to exempt companies that move production to the US.
With support from Apple and Nvidia, Hon Hai is expanding capacity in the US. It will add more AI server production in Wisconsin and Texas, where the company operates existing campuses, executives have said.
Read: Foxconn to Operate SoftBank’s Stargate AI Server Site in Ohio
More stories like this are available on bloomberg.com
