Hon Hai (2317.TW): Sep beat: revenues +38% YoY; New AI servers, CPO switch and Foldable phones to drive 4Q26; Buy (on CL)

Goldman Sachs published a research note on Hon Hai Precision (2317.TW), noting that Hon Hai's September revenues grew strongly both YoY and MoM, significantly beating Goldman Sachs and Bloomberg consensus estimates, driven by the ramp-up of AI servers and contributions from new smartphone models. On a MoM basis, Consumer electronics was the strongest, followed by Components, Cloud and Networking, with all segments positive MoM; on a YoY basis, Cloud and Networking grew fastest, while consumer electronics growth was slower because major brand customers launched fewer models this year and the new foldable form factor was unavailable in September. The report expects 4Q26 revenues to grow both YoY and QoQ, supported by new AI server racks, new smartphone models and CPO switch shipments, with management indicating AI-related products will maintain solid momentum and ICT products benefiting from typical 2H seasonal tailwinds. Hon Hai is a major supplier of CPO switches, and new form-factor p