Nvidia partner Foxconn reports 26% revenue spike as AI boom continues

Foxconn, a pivotal partner of Nvidia in advancing artificial intelligence, has reported a remarkable 26% increase in revenue year-over-year for November. This surge comes in response to the heightened demand for servers as the AI revolution gains momentum. Known as Hon Hai, Foxconn is the largest contract electronics manufacturer globally, producing essential components for data centers, including servers that house chips, while also assembling Apple's iPhones. In its latest monthly revenue report, Foxconn highlighted "strong growth" in its cloud and networking products, attributing this to the rising demand for AI server racks. The company disclosed that its November revenue reached NT$844.3 billion (approximately $27 billion). As a longstanding collaborator with major tech companies like Nvidia and Apple, Foxconn has positioned itself as a critical player in the establishment of AI infrastructure. Notably, in May, it was announced that Foxconn would be providing infrastructure for a significant AI factory in Taiwan, partnering with Nvidia and the Taiwanese government. Further solidifying its role in the AI sector, Foxconn revealed in July that it had acquired a stake in TECO Electric & Machinery Co., a firm specializing in data center construction. Additionally, OpenAI announced last month a collaboration with Foxconn focused on design and U.S. manufacturing readiness for next-generation AI infrastructure hardware. Despite a month-on-month revenue decline of about 6%, attributed to a slight downturn in its smart consumer electronics segment, Foxconn remains optimistic. The company noted in its business outlook that shipments of AI server racks are on the rise, coinciding with a peak season for ICT products in the latter half of the year. Foxconn's AI server business has also reportedly contributed to a 17% increase in its third-quarter profits compared to the previous year. Since the beginning of 2025, Foxconn's stock has surged by 26%, following an impressive 76% increase over the previous year, reflecting strong investor confidence in its future in the AI domain.