Hon Hai Jumps by Most in Years After Strong Outlook for AI Servers

(Bloomberg) — Hon Hai Precision Industry Co. Ltd. shares saw their biggest intraday jump in more than three years after the company forecast strong growth for its artificial intelligence (AI) hardware sales this year.

The Taiwanese firm expects its AI server business to grow by 40% this year and is targeting a 40% share of that overall market, Chairman Young Liu said on an earnings call Thursday. The company, known also as Foxconn, reported its second straight quarter of strong profit growth after lucrative AI hardware sales helped offset weakness in iPhone and consumer electronics demand.