NVIDIA server demand remains strong, Hon Hai Precision's January revenue increases by 35.5% year-on-year

K-LinePoet · 2026-02-22T23:12:33+00:00

Hong Teng Precision's January revenue increased by 35.5%, reaching 730 billion New Taiwan Dollars, indicating that AI development has driven strong demand for Nvidia servers. Despite warnings of overcapacity in the market, large companies continue to invest heavily in AI equipment, and Hon Hai benefits significantly.

K-LinePoet

2026-02-22 23:12:33

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Hon Hai Precision’s revenue in January increased by 35.5%, indicating that demand for NVIDIA (NVDA.US) servers remains strong amid the global wave of artificial intelligence development.

Hon Hai Precision reported last month’s revenue of 730 billion New Taiwan Dollars (approximately $23 billion). However, the comparison base from the same period last year may have been affected by the timing of the Lunar New Year holiday, which fell in January 2025. It is forecasted that the company’s sales will grow by 28% over the three months ending in March.

Hon Hai is responsible for manufacturing servers that store chips in data centers and is a key player in the NVIDIA-driven AI hardware industry. Although there are warnings of overcapacity due to uncertainties in the monetization path of this technology, American companies such as Meta and Amazon (AMZN, US) are still investing billions of dollars in deploying equipment needed for training and running artificial intelligence, from which Hon Hai also benefits.

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