Apple’s iPhone maker expects to more than double AI server sales

Hon Hai Precision Industry expects to at least double revenue in the second half from the sale of servers intended for training and hosting AI services, joining the growing ranks of hardware suppliers riding growing global interest in artificial intelligence.

The company posted NT$1.1tn ($35.8bn) of revenue from its overall server business in 2022, chairman Young Liu said at its annual shareholders’ meeting.

Hon Hai, the listed vehicle of Foxconn Technology Group, is also working with Nvidia on autonomous driving applications, he said.

Investors are betting that generative AI, popularised since the launch of ChatGPT in November, will supercharge swaths of the tech industry and usher in groundbreaking applications.

Nvidia’s valuation briefly surpassed $1tn after the world’s biggest maker of the specialised AI chips gave a forecast that exceeded expectations.

In a two-hour presentation at the Computex conference this week Taiwan, Nvidia chief executive officer Jensen Huang unveiled a new batch of products and services tied to artificial intelligence, looking to capitalise on a frenzy that has made his company the world’s most valuable chipmaker.

Hon Hai, which also makes the majority of Apple’s iPhones, reported its third consecutive quarterly profit miss in May as the smartphone slump endured.

The company is looking to newer fields such as electric vehicles and AI to revive growth. It supplies servers to major global companies including Amazon.com., Alphabet’s Google and Microsoft.

Chairman Young Liu test-drove MODEL C in Taipei City. Comfortable seats. Stable steering and braking. Agile and powerful acceleration and handling prowess. A perfect balance between aesthetics and functionality. #Foxtron #Foxconn #HonHaiTechnologyGroup pic.twitter.com/hYHAGXwCOm

— Hon Hai Technology Group (Foxconn) (@HonHai_Foxconn) May 31, 2023

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