The companies that build the guts of artificial intelligence systems are riding Nvidia's wave to bumper results.
Hon Hai — the Taiwanese electronics giant also known as Foxconn — reported a roughly 40% jump in sales, driven by continued AI demand, according to CNBC TV18 and Business Standard. Business Standard attributes the surge specifically to robust demand for AI servers, the powerful machines that run AI models in data centers.
The result beat expectations. Bloomberg, Yahoo Finance and The Business Times all described Hon Hai's sales as "surging" on solid AI demand. CNBC TV18 noted the company sees continued growth despite chip shortages and broader market concerns. As one report framed it, the tech giant that manufactures for both Nvidia and Apple "just crushed expectations."
The good news isn't limited to Foxconn. Micron Technology, a maker of memory chips used in AI hardware, has been one of the market's standout performers. Shares of Micron have advanced 240% year to date, according to a report carried by AOL and Yahoo Finance, making it the second-best-performing stock in the S&P 500. The only stock ahead of it is rival memory-chip maker Sandisk. That report said Micron investors received good news from both Wall Street and Nvidia CEO Jensen Huang.
The common thread: as demand for Nvidia's AI chips stays strong, the suppliers that assemble servers and provide memory around those chips benefit too. It's a reminder that a single company's boom ripples outward through an entire supply chain.
Why it matters: these supplier results are a real-world gauge of whether the AI spending frenzy is still accelerating — and, for now, the numbers suggest it is.