On Saturday, Nvidia Corp (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL) supplier Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd (OTC:HNHAF), reported a 29.68% year-over-year jump in first-quarter revenue.

AI Demand Drives Strong Revenue Growth

The company said revenue reached NTD 2.13 trillion (about $66.6 billion), slightly missing analyst estimates of T$2.148 trillion.

March sales alone climbed 45.57% from a year earlier to a record NTD 803.7 billion for the month.

Foxconn pointed to growth in its cloud and networking segment, driven by strong demand for AI servers, particularly those used in data centers.

Outlook Strong, But Risks Remain

Looking ahead, Foxconn said it expects continued growth in the second quarter on both a quarterly and annual basis, with AI-related products maintaining a strong trajectory.

However, the company cautioned that "it remains necessary to monitor the impact of the volatile global political and economic situation."

Chairman Young Liu last month highlighted geopolitical tensions, particularly conflicts in the Middle East, as a major external challenge this year, Reuters reported.

The company is scheduled to report full first-quarter earnings on May 14.

Price Action: At the time of writing, Hon Hai stock was seen trading 2% lower at NTD 193 ($6.03) in Taipei.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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