This article first appeared on GuruFocus.

Hon Hai Precision Industry Co. (HNHAF) just posted a stronger-than-expected quarter, powered by the global surge in AI infrastructure spending. The Taiwanese giant reported NT$57.67 billion ($1.9 billion) in net income, surpassing analyst estimates of NT$51 billion, with revenue climbing 11% to NT$2.06 trillion. Demand for Hon Hai’s AI serversmany built around Nvidia (NASDAQ:NVDA) hardwarehas fueled double-digit growth since last summer, and that pace could carry through year-end. October sales rose 11.3%, and management expects sequential growth this quarter, with sales projected to rise another 15% in the December period. The stock has already advanced more than 30% this year on optimism surrounding its AI exposure.

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The story sits at the heart of the global AI buildout. Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG), Amazon (AMZN), and Microsoft (NASDAQ:MSFT) are preparing to spend more than $400 billion next year expanding their AI data centersa figure that could keep suppliers like Hon Hai, Wiwynn, and Quanta running at full capacity. But investor nerves are creeping in after a sharp pullback in tech names. Michael Burry (Trades, Portfolio)’s Scion Asset Management revealed bearish bets on Nvidia, while SoftBank offloaded its entire $5.83 billion Nvidia stake to free up capital for fresh AI ventures. Those moves, while strategic, have stirred questions over whether the sector’s exuberance may be coolingat least for now.

Hon Hai remains deeply tied to Apple (NASDAQ:AAPL), continuing to assemble iPhones and other devices that anchor its diversified business. Apple’s latest results showed a surprise drop in China sales but guided for a rebound this quarter, expecting growth to return in the region. As the AI wave reshapes global hardware supply chains, Hon Hai’s dual positionbridging Apple’s consumer ecosystem and Nvidia’s data-center surgecould keep it on investors’ radar as one of the quiet beneficiaries of the next phase in tech’s capital cycle.