Recently, Hon Hai Precision Industry Co. released its latest financial report, showing that its revenue growth exceeded market expectations, with a year-on-year increase of 15%. As a server assembly partner for the American company NVIDIA, Hon Hai has reached new revenue highs driven by the ongoing demand for artificial intelligence infrastructure. In the past three months, the company achieved revenue of NT$2.13 trillion (approximately US$64.6 billion). Notably, in December, the company's revenue grew by 42% year-on-year, far exceeding analysts' expectations.
Due to the rapid development of artificial intelligence technology, Hon Hai and other Taiwanese AI hardware suppliers have benefited from substantial expenditures by major tech companies such as Google and Microsoft in data centers. Nevertheless, the urgent demand for AI application scenarios has not yet fully materialized, causing investors to feel anxious about future growth slowing down. Goldman Sachs analysts have stated that they have raised their earnings expectations for 2024 by 1% and anticipate revenue growth in the coming years, particularly in AI server sales.
Hon Hai expects that in the coming years, its cloud business revenue will match that of its iPhone manufacturing business, indicating that the company is actively seeking business diversification to reduce its reliance on Apple. The growth rate of Apple products has stabilized, and historically, Apple products have accounted for more than half of Hon Hai's sales. Additionally, Hon Hai plans to enter the electric vehicle market, although this sector has not yet had a significant impact on its profits.
According to media reports, Hon Hai is in discussions with Renault, seeking collaboration opportunities with Nissan, but this cooperation is currently in a wait-and-see stage. Furthermore, future market prospects and first-quarter performance forecasts may have short-term effects on the company's stock performance.
Key Points:
📈 Hon Hai Precision's recent financial report shows a year-on-year revenue increase of 15%, exceeding market expectations.
🤖 The company benefits from AI infrastructure demand, particularly with investments from major tech companies, with a 42% revenue growth in December.
🚗 Hon Hai is actively seeking business diversification, planning to equalize its cloud business revenue with that of its iPhone business in the coming years.