IPhone Maker Hon Hai Hits a Record High Buoyed by AI, Apple

Hon Hai Precision Industry Co., also known as Foxconn, saw its shares reach a record high following a 19% increase in monthly revenue, driven by strong iPhone and AI server sales. The company's stock surged by up to 6.7% after reporting the highest revenue for May since 2023. Despite a near-10% drop in first-quarter revenue due to underperforming iPhone sales, recent developments and a new MacBook Air launch have bolstered demand.

As the major assembler of Apple's iPhones, Hon Hai's financial performance is closely watched for insights into iPhone sales trends. The company is also expanding into manufacturing server racks and equipment for AI, diversifying its revenue sources. With Apple's recent revenue beat in China and expected growth in iPad and services, Hon Hai's outlook remains cautiously optimistic, though challenges in iPhone-related revenue are anticipated due to shifting market dynamics and production adjustments.