Apple iPhone Sales Soar While OpenAI Partnerships Boost AI Hardware

Foxconn, also known as Hon Hai Precision Industry Co., reported a significant financial surge, with fourth-quarter 2025 revenue reaching NT$2.6 trillion, or about $83 billion. This figure, which also appeared as $82.6 billion in some reports, exceeded analyst expectations by a considerable margin. The impressive growth, a 22 percent increase, was primarily fueled by robust demand for AI servers and strong sales of Apple's iPhone 17 models, which saw double-digit growth in the US and China. Foxconn, a crucial partner for Nvidia and a major assembler for Apple, is actively expanding its AI server production capabilities in Wisconsin and Texas. The company also solidified its position in the AI hardware space through strategic partnerships, including one with OpenAI in November for AI hardware designs and another with Nvidia and the Taiwanese government in May to establish an AI factory in Taiwan. Foxconn anticipates continued high earnings driven by increasing AI rack shipments. Meanwhile, the broader AI market shows both optimism and caution. US stock markets, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, rallied on January 5, 2026, partly due to renewed excitement about AI demand. However, investors express concerns about the high valuations of some AI stocks, specifically highlighting Palantir Technologies and CrowdStrike. Palantir reported a 63 percent revenue growth last quarter, driven by its Artificial Intelligence Platform (AIP), and a 45 percent increase in customer count in Q3 2025. CrowdStrike also saw strong growth, with annual recurring revenue up 23 percent. Other companies are also making moves in the AI sector. TE Connectivity aims to double its AI-related sales within the next two years, providing essential components for AI hardware. Tata Consultancy Services (TCS) is experiencing steady demand for its AI and automation services, with a 'BUY' rating from Meyka AI ahead of its earnings report. KeepZone AI, a subsidiary of Jeffs' Brands, is enhancing security offerings by integrating SkyStar aerostat surveillance systems with its AI-radar threat detection. Applied Optoelectronics, after an 'AI optics' rally, received a large order for 800G data-center transceivers and plans to significantly increase production of these units.

Key Takeaways

• Foxconn (Hon Hai) reported Q4 2025 revenue of NT$2.6 trillion, equivalent to $83 billion (or $82.6 billion), surpassing analyst expectations.
• Foxconn's revenue growth of 22% was driven by strong AI server demand and double-digit sales growth of Apple's iPhone 17 in the US and China.
• Foxconn is expanding AI server production in Wisconsin and Texas and partnered with OpenAI for AI hardware designs and Nvidia for an AI factory in Taiwan.
• Investors are concerned about the overvaluation of certain AI stocks, specifically Palantir Technologies and CrowdStrike.
• Palantir Technologies saw 63% revenue growth last quarter, fueled by its Artificial Intelligence Platform (AIP), and a 45% increase in Q3 2025 customer count.
• US stock markets rallied on January 5, 2026, with the Dow hitting a new record, partly due to renewed optimism about AI demand.
• TE Connectivity plans to double its AI-related sales within two years, supplying components for the AI hardware industry.
• Tata Consultancy Services (TCS) is experiencing steady demand for its AI and automation services across various sectors.
• KeepZone AI is integrating SkyStar aerostat surveillance systems with its existing AI-radar and robotic control room products for homeland security.
• Applied Optoelectronics received a significant order for 800G data-center transceivers and aims to produce 100,000 units per month by the end of 2025.

Hon Hai sales soar past estimates on AI and iPhone 17 demand

Hon Hai, a key partner for Nvidia, reported strong sales of NT$2.6 trillion or $82.6 billion for the quarter ending December. This amount was higher than the NT$2.4 trillion analysts expected. The Taiwanese company is growing its AI server production in Wisconsin and Texas. Additionally, the iPhone 17 models, which Hon Hai assembles, saw double-digit sales growth in the US and China.

Foxconn sales jump 22 percent on strong AI and iPhone demand

Foxconn, also known as Hon Hai Precision Industry, announced a 22 percent revenue increase last quarter, reaching NT$2.6 trillion or $82.6 billion. This figure surpassed analyst expectations of NT$2.4 trillion, mainly due to a boom in AI server demand. The company is expanding its AI server production in Texas and Wisconsin. Foxconn also benefited from strong sales of Apple's iPhone 17, which saw double-digit growth in the US and China. While some investors worry about a potential AI spending bubble, companies like Nvidia and Micron remain confident in long-term AI demand.

Foxconn revenue surges 22 percent from AI and cloud growth

Foxconn, also known as Hon Hai, reported a 22 percent increase in revenue for the fourth quarter of 2025, reaching NT$2.6 trillion or $83 billion. This amount exceeded analyst predictions, driven by strong growth in its components and cloud businesses. As the world's largest contract electronics manufacturer, Foxconn assembles Apple's iPhone and builds servers for data centers. The company partnered with OpenAI in November for AI hardware designs and with Nvidia and the Taiwanese government in May to build an AI factory in Taiwan. Foxconn expects continued high earnings due to increasing AI rack shipments.

Foxconn revenue up 22 percent driven by AI data centers

Foxconn, also known as Hon Hai Precision Industry Co., saw its fourth-quarter revenue for 2025 jump 22 percent to NT$2.6 trillion or $83 billion. This beat analyst expectations, fueled by strong demand for AI infrastructure. The company builds servers for Nvidia's AI chips and is expanding its AI server production in Wisconsin and Texas. Foxconn also formed partnerships with OpenAI for AI hardware designs and with Nvidia and the Taiwanese government for an AI factory. Additionally, strong sales of Apple's iPhone 17 contributed significantly to its revenue.

Hon Hai sales surge 22 percent on AI and iPhone demand

Hon Hai Precision Industry Co. reported a 22 percent increase in quarterly sales, reaching NT$2.6 trillion for the quarter ending December. This figure exceeded expectations, driven by the rapid growth of AI-driven data center infrastructure. The company is expanding its AI server production in Wisconsin and Texas to meet rising demand. Hon Hai also benefits from assembling Apple's iPhones, with the iPhone 17 models seeing strong sales in both the US and China. Nvidia and Micron Technology remain confident about continued AI demand.

Investors warn of overvalued AI stocks Palantir and CrowdStrike

Investors are concerned that some AI stocks are overvalued, highlighting Palantir Technologies and CrowdStrike as examples. Palantir's revenue growth reached 63 percent last quarter, driven by US commercial customers using its Artificial Intelligence Platform or AIP. The company also saw a 45 percent increase in its customer count in Q3 2025. CrowdStrike's annual recurring revenue grew 23 percent last quarter, with total revenue up 22 percent, thanks to its next-generation AI solutions and Falcon Flex licensing model. Despite their strong performance, both companies' stock valuations are considered very high.

Palantir and CrowdStrike AI stocks face overvaluation concerns

Investors are worried about the high valuations of certain AI stocks, specifically naming Palantir Technologies and CrowdStrike. Palantir's revenue grew by 63 percent last quarter, fueled by US commercial clients adopting its Artificial Intelligence Platform or AIP. The company also added 45 percent more customers in Q3 2025. CrowdStrike's annual recurring revenue increased by 23 percent last quarter, with total revenue rising 22 percent, thanks to its new AI solutions and Falcon Flex licensing. Despite their strong growth, these companies' stock prices are seen as very expensive.

US stocks rally as AI hopes and oil majors boost market

US stock market futures showed a higher open on Monday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all gaining. Investors reacted to a US military strike and the capture of President Nicolas Maduro in Venezuela, which is expected to impact oil majors. However, the overall market felt positive due to renewed excitement about artificial intelligence demand. This optimism is strongly supporting technology stocks involved in AI development and implementation.

Dow hits record as AI and oil stocks boost market

US stocks rose on Monday, January 5, 2026, with the Dow Jones Industrial Average jumping 600 points to a new record. The S&P 500 and Nasdaq also rallied, as oil stocks surged following US military action in Venezuela. Investors were also optimistic about artificial intelligence, with positive news from companies like Nvidia and TSMC. US oil majors such as Chevron and Exxon saw gains, and refiners like Valero Energy Corporation are expected to benefit from Venezuelan oil. Gold and silver prices also increased.

TE Connectivity aims to double AI sales and adds dividend

TE Connectivity, known as TEL, announced plans in late 2025 to double its AI-related sales within the next two years. The company provides important components for the AI hardware industry. Its board also approved a new quarterly cash dividend. This strategy shows TE Connectivity's goal to balance fast growth in high-tech areas with providing income to its shareholders.

TCS sees strong AI services demand ahead of earnings

Tata Consultancy Services Limited, trading as TCS.NS, is seeing steady demand for its AI and automation services across Banking, Retail, and Life Sciences. The company's products, like TwinX and ignio, are driving higher-margin services. On January 5, 2026, the stock traded at INR 3,227.20, with strong per-share economics and a high return on equity of 48.40 percent. Meyka AI gives TCS.NS a "BUY" rating, expecting a 20.42 percent upside over 12 months. Investors are awaiting the company's earnings report due on January 12, 2026.

Foxconn shares rise on record AI sales and cloud growth

Foxconn, a major supplier for Nvidia and Apple, saw its shares increase after reporting record fourth-quarter sales. The company's sales jumped 26.4 percent to about $83 billion, mainly driven by its cloud and networking products division. Foxconn also achieved record sales for December. Despite a slight dip in consumer electronics revenue due to weaker exchange rates, Wall Street remains positive about AI hardware, and Apple is expected to have shipped more smartphones globally in 2025.

KeepZone AI boosts security with aerostat surveillance systems

Jeffs' Brands' subsidiary, KeepZone AI, signed an agreement with RT LTA Systems to promote and sell SkyStar aerostat systems. These aerostats are small, quickly deployable platforms for intelligence, surveillance, reconnaissance, and communications, with over 7 million hours of operation. KeepZone AI will combine these aerial systems with its current homeland security products, which include Scanary's AI-radar threat detection and Zorronet's robotic control room. This move expands Jeffs' Brands' focus on homeland security and public safety.

Applied Optoelectronics stock drops after AI optics rally

Applied Optoelectronics, Inc. or AAOI, saw its shares fall about 8 percent on Monday, giving back gains from the previous Friday. This drop reflects investors adjusting their views on the "AI optics" market. In December, the company received its first large order for 800G data-center transceivers, which are expected to add $4 million to $8 million to its fourth-quarter revenue. Applied Optoelectronics also introduced a new 400-milliwatt pump laser for advanced optical connections. The company aims to produce 100,000 units of 800G transceivers per month by the end of 2025.

Top 5 AI and Robotics ETFs for 2026 investment

The year 2026 is expected to continue the strong growth in artificial intelligence, automation, and robotics, with chip manufacturers struggling to keep up with demand. Investors can explore five Exchange Traded Funds or ETFs that focus on different parts of this "supercycle." These include the Roundhill Generative AI & Technology ETF for pure AI plays and the Global X Artificial Intelligence & Technology ETF for a broader approach. Other options are the ROBO Global Robotics & Automation Index ETF for robotics, the Global X Robotics & Artificial Intelligence ETF for both, and the KraneShares Global Humanoid and Embodied Intelligence Index ETF for new humanoid intelligence. These ETFs offer ways to invest in the economy's fastest-growing sectors.

Sources

• Nvidia Partner Hon Hai’s Sales Beat Estimates in an AI Boom
• Nvidia's Foxconn posts 22% sales rally, topping estimates on AI server demand boom
• Nvidia partner Foxconn reports 22% revenue surge as AI buildout ramps up
• Foxconn Q4 revenue jumps 22% as AI data center buildout accelerates
• Hon Hai Sales Jump 22% as AI Data Center Buildouts Accelerate
• Investors Believe Overvaluation Is One of the Biggest Risks to the AI Story. Here Are 2 AI Stocks With the Frothiest Valuations.
• Investors Believe Overvaluation Is One of the Biggest Risks to the AI Story. Here Are 2 AI Stocks With the Frothiest Valuations.
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