Posted 3/14/2024, 7:03:42 AM
Hon Hai Profits Beat Estimates as AI Sales Offset iPhone Weakness
- Hon Hai Precision Industry Co. reported 33% increase in Q4 net income to $1.7B, beating estimates
- Profit growth driven by high-margin AI hardware sales, offsetting iPhone weakness
- Shares up 15% in 2023 on growing optimism about Hon Hai's AI server opportunity
- Still reliant on Apple which makes up over 50% of revenue; iPhone demand volatile
- Analysts see Hon Hai's AI business expanding quickly, reaching 10-12% of revenue by 2025