Hon Hai Posts Strong Surge Driven by AI Demand Momentum

Hon Hai Precision Industry delivered impressive financial results, with fourth quarter revenue hitting NT$2.60 trillion, marking a robust 22.07% jump year-over-year. The manufacturing giant wrapped up the full year with cumulative revenue of NT$8.10 trillion, reflecting an 18.07% annual increase that underscores sustained market strength.

December performance proved particularly striking, as the company logged NT$862.9 billion in consolidated revenue—a 31.77% spike compared to the same month last year. This exceptional growth reflects ongoing momentum across key business segments.

AI Momentum Driving the Growth

The standout factor behind these gains is the accelerating ramp-up in AI rack shipments, which has become a significant revenue driver for Hon Hai. As artificial intelligence infrastructure deployment intensifies globally, the company is capturing substantial demand from data center buildouts and cloud computing expansions.

Q1 Outlook: Defying Seasonal Weakness

Looking ahead, Hon Hai expects Q1 to defy traditional seasonal weakness. Management guidance suggests first quarter results should land near the upper end of the company’s five-year seasonal range—a notable signal that AI-driven demand may sustain beyond typical off-season patterns.

ICT products, meanwhile, are entering their customary off-season phase, but the robust AI business is likely offsetting this cyclical headwind. This dynamic suggests the company’s diversification into high-growth AI infrastructure is delivering tangible results during periods when legacy segments typically underperform.