Investing.com-- Shares of Hon Hai Precision Industry Co, popularly known as Foxconn (SS:601138), jumped on Tuesday following the announcement of strong January sales figures.
The company reported revenues of NT$538.67 billion ($16.42 billion) for January, marking a 3.2% increase compared to the same month last year.
With strong demand for artificial intelligence servers, revenue for the company’s cloud and networking products saw strong growth year-on-year.
Foxconn shares (TW:2317) rose nearly 3% in Taiwan trade to T$ 179, after reaching as high as T$ 182, earlier in the day.
Foxconn is a key supplier and partner for NVIDIA Corporation (NASDAQ:NVDA). The two companies have collaborated on various projects, including the development and manufacturing of advanced AI servers and supercomputers.
Despite clocking record-high revenue in the fourth quarter of 2024 and entering the usual slow season, the outlook for the first quarter has improved compared to last month, Foxconn said in a statement.
The company has benefited greatly from increased demand for AI infrastructure over the past two years, which has in turned fueled substantial gains in its share price.
But returns from AI have been somewhat offset by slower sales of consumer electronics, which are a major part of Foxconn's earnings. The company assembles iPhones for Apple Inc (NASDAQ:AAPL).
Still, Foxconn is attempting to diversify beyond its core electronics segment with a foray into electric vehicles. The company may take a stake in Japanese automaker Nissan (OTC:NSANY).