Hon Hai Technology Group posted June consolidated sales of NT$1.38 trillion, up 67.6% year-over-year, driven by robust orders for Nvidia AI server components. This surge in AI hardware demand highlights escalating data-center investment needs that could increase procurement costs and capacity for Google Cloud's AI expansion.
Hon Hai Technology Group posted consolidated sales of NT$1.38 trillion for June, representing a 67.6% year-on-year increase and marking its highest monthly revenue this year. The company attributed this surge to elevated orders for AI server components tied to Nvidia's latest GPU products.
Strong demand for AI server boards and infrastructure parts drove Hon Hai's growth, reflecting accelerating adoption of high-performance compute solutions. The company has ramped up production capacity at its key Taiwanese and Mainland China facilities to fulfill escalating Nvidia-backed orders.
Escalating AI hardware demand may signal increased capital expenditure for cloud providers, including Google Cloud, in sourcing GPUs and custom server builds. Higher pricing and supply chain constraints could influence GOOGL's data-center investment plans and operating margins in its AI division.
