Hon Hai Precision, a key manufacturer of NVIDIA servers, reported an 11.3% year-on-year revenue increase in October, maintaining growth momentum driven by robust demand for AI accelerators.

The company posted revenue of NT$895.7 billion ($29 billion) for the month, with growth rates aligning closely with the quarter ending September. Sales for the December quarter are projected to rise by 15%.

As a major producer of data center chip servers, Hon Hai plays a pivotal role in the AI ecosystem centered around NVIDIA. While the company benefits from accelerated infrastructure investments by tech giants like Meta and OpenAI, analysts caution that most enterprises have yet to see significant returns from these expenditures.

A substantial portion of Hon Hai’s revenue still relies on assembling Apple’s electronic devices, including iPhones. However, as sales of such products plateau, the company is increasingly capitalizing on opportunities arising from the AI boom.

Backed by partnerships with Apple and NVIDIA, Hon Hai is expanding its U.S. production capacity. Executives confirmed plans to ramp up AI server manufacturing in Wisconsin and Texas.