Hon Hai Precision Industry revenue rises 34% amid Nvidia server demand

Hon Hai (Foxconn) reported a 34% year-over-year revenue gain for April–May 2026 (NT$1.69 trillion / $53.6B), beating expectations, driven by accelerating demand for Nvidia-powered AI servers. May revenue rose ~40% month-over-month, and Foxconn raised its 2026 revenue target to NT$11 trillion (~$350.5B), implying ~36% annual growth. AI servers now account for roughly 40% of its Cloud & Networking Products segment, and the company expects rack shipments to more than double in 2026. The report is bullish for Nvidia (NVDA.OQ) and the broader AI supply chain — memory, power-management, cooling, and data-center REITs — though concentration risk around Nvidia’s architecture and the durability of the buildout remain key downside risks.