The company that built its empire assembling iPhones now makes more money from AI servers. Hon Hai Precision Industry, better known as Foxconn, posted a 34% year-over-year revenue increase for the April-to-May 2026 period, pulling in NT$1.69 trillion ($53.6B), beating analyst expectations of 32% growth.
The driving force: hyperscalers and cloud providers are aggressively spending on Nvidia-powered AI infrastructure. AI servers now account for roughly 40% of the company’s Cloud and Networking Products segment revenue, surpassing smartphone assembly.
May was particularly strong: revenue jumped 40% month-over-month, signaling accelerating demand. The first quarter set the stage with over 29% revenue growth and a 19% profit increase.
Foxconn raised its full-year 2026 revenue target to NT$11 trillion ($350.5B), representing a 36% increase, and expects AI server rack shipments to more than double. The company holds over 40% of the global AI server market and is positioned as a key manufacturing partner for Nvidia’s upcoming Vera Rubin generation.
For investors, Foxconn’s growth validates Nvidia’s demand narrative. The expectation that AI server shipments will double implies sustained capital expenditure from hyperscalers throughout 2026, bullish for the entire supply chain. However, concentration risk remains: 40% of Foxconn’s fastest-growing segment depends on one chip architecture from one supplier. Any disruption to Nvidia’s roadmap-from supply chains, export controls, or competitors like AMD-could create turbulence.