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(Bloomberg) -- Hon Hai Precision Industry Co. posted a 25% rise in revenue during the first two months of 2025, quickening from last year in a reflection of expanding demand for AI computing.

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The main supplier of Nvidia Corp. AI servers and Apple Inc. iPhones, also known as Foxconn, reported sales of NT$1.1 trillion ($33.5 billion) for January and February. That’s an acceleration from the 11% growth pace it clocked in 2024. Analysts on average project a revenue increase of 22% to NT$1.6 trillion for the first quarter.

The quickening follows Nvidia’s disclosure last week of $11 billion in quarterly revenue from its most advanced Blackwell chip, which it called “the fastest product ramp” in the company’s history. Those results helped ease concerns about delays in Blackwell-based AI servers.

Hon Hai, which ships electronics to the rest of the world from giant production bases in China, is grappling with uncertainty surrounding Trump-administration tariffs and the sustainability of the AI boom. While big tech firms from Microsoft Corp. to Amazon.com Inc. have pledged to keep spending to keep pace with a revolutionary technology, Chinese startup DeepSeek’s rise has spurred doubts about whether all that infrastructure expenditure is justified.

As Nvidia’s most important server maker, Hon Hai’s performance is a bellwether for the AI infrastructure build-out. Hon Hai expects strong year-on-year growth for the first quarter, it said in its monthly sales statement.

Hon Hai has been expanding its investments in the US to make more AI servers there. Last week Apple said it will partner with Foxconn to begin producing servers that power Apple Intelligence in Houston later this year.

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