Hon Hai Precision Industry Co., the world’s largest electronics manufacturer and leading technology provider, reported a 35.5% surge in revenue in January. This rise demonstrated that the global demand for artificial intelligence (AI) server hardware continues to expand strongly.Â
The Taiwanese electronics giant, a key manufacturing partner for Nvidia Corp., said it achieved roughly NT$730 billion (about US$23 billion) in revenue last month. That performance reflects brisk orders for server systems that house Nvidia’s AI chips, used by major cloud providers and enterprises to train and run large-scale AI applications.
However, analysts conducted research and discovered that the Lunar New Year holiday shift could skew the year-over-year analysis. Afterwards, they predicted that Hon Hai would report a substantial sales increase for the three months ending in March, amounting to a 28% surge.Â
Hon Hai positions itself as a key supplier in the tech industryÂ
Hon Hai manufacturers servers play a crucial role in Nvidia’s AI hardware industry. In this industry, they actively house chips for data centers. In line with its unique role, the firm has generated significant profits from US-based companies such as Meta Platforms Inc. and Amazon.com Inc., which are allocating considerable funds to the infrastructure needed to train and operate AI models. Even so, these firms raised concerns regarding the consistency of the oversupply issue as the industry struggles to find a clear path to profitability for the technology.
In the meantime, towards the end of last year, Hon Hai also saw a major increase in its third-quarter gains amid a surge in demand for AI servers. The Taiwanese electronics manufacturer, best known as a key assembler of Apple’s iPhone, reported net profit of NT$57.67 billion for the July-to-September period.
This figure represents a 17% year-over-year increase, exceeding analysts’ forecasts. On the other hand, the firm reported revenue of NT$2.06 trillion, in line with expectations. In response to this rise, the technology provider noted that AI revenue growth had surpassed that of the consumer electronics sector and asserted that this growth trajectory would likely continue in 2026.
Liu Young, the Chairperson of Hon Hai Precision Industry, urged investors to stick to the money trends. He also assured them that the firm is aggressively investing to meet growing demand. Nonetheless, he cited currency instability and geopolitical issues as risks to global supply chains.
Meanwhile, to reinforce its dominance in the tech sector, Hon Hai enhanced its collaborations in AI and automation, partnering with major players such as Mitsubishi Electric to develop sustainable, high-efficiency AI infrastructure and teaming up with Nvidia, Stellantis, and Uber on self-driving vehicle technologies.Â
In 2025, Hon Hai’s stock rose by more than 30%, cementing its role as a key player in AI hardware. This move is poised to drive its future growth.
Broadcom projects an all-time high in AI revenue this yearÂ
Just like Hon Hai, Broadcom is a dominant, high-growth technology firm deeply integrated into the AI and electronics supply chains. Earlier, Broadcom’s CEO, Hock Tan, predicted that its AI revenue would rise in fiscal 2026. Tan made this speculation after the tech giant secured over $10 billion in AI infrastructure orders from a new client.
Broadcom’s chief executive, who was 73 at the time of the company’s March filing,  also made clear his plan to maintain leadership for at least the next five years. The statement was welcomed by investors, sending the company’s shares up about 4% in after-hours trading, as the CEO is widely credited with building Broadcom into a global powerhouse in chip design.
To demonstrate heightened interest in the firm, Tan noted the presence of four new potential clients actively collaborating with Broadcom to create their own custom chips, as well as the firm’s three current key clients.
This was after a new potential client placed a firm order in the last quarter, officially qualifying them as a customer. However, the CEO failed to disclose their identities during an earnings call.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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