Hon Hai's October Sales Rise 46% to a Record on Demand for Nvidia AI Servers

Revenue reached about NT$1.31 trillion (about $39.7 billion), according to reports of the company's unaudited monthly figures, which Seeking Alpha described as the highest single-month total in its history. A year earlier, Hon Hai reported October revenue of NT$895.71 billion.

The figure matters beyond Taiwan because Hon Hai is the largest assembler of Nvidia's AI server racks, which makes its monthly sales one of the earliest hard readings on how much hardware cloud providers and AI labs are actually taking delivery of. Cloud and networking products, the division that includes AI servers, overtook consumer electronics in the second quarter to account for more than half of the company's revenue for the first time.

The company expects its AI business to keep driving growth in the fourth quarter, according to reports of its outlook, though it has not given a precise forecast. Bloomberg reported that third-quarter sales rose 47 per cent to NT$3.03 trillion.

The October jump arrives at a nervous moment for AI hardware stocks. Shares of Samsung Electronics and SK Hynix fell sharply in Seoul on Thursday on concerns that a Democratic-controlled US Congress will tighten rules on AI data centres, while US neocloud shares and CoreWeave bonds fell earlier in the week. Hon Hai's figures show no sign yet of a slowdown in orders from the hyperscalers and AI companies building those facilities.

Hon Hai, which also assembles iPhones for Apple, has been expanding server production in the United States, Mexico and Taiwan to meet demand from Nvidia's customers. The company releases its unaudited revenue on the fifth of each month, ahead of quarterly earnings.

Hon Hai is due to report full third-quarter earnings on November 12, when investors will look for detail on margins in the AI server business and on its plans for 2027.