Foxconn’s second-quarter profit rose 35% to T$59.97 billion, beating analyst estimates as strong AI demand boosted its business.
Taiwan-based Foxconn, formally known as Hon Hai Precision Industry, reported a 35 per cent year-on-year increase in second-quarter net profit, helped by continued strong demand for artificial intelligence (AI) infrastructure.
The company posted net profit of T$59.97 billion ($1.86 billion) for the April-June quarter, compared with T$44.4 billion a year earlier. The result was above the T$58.8 billion average estimate from analysts polled by LSEG.
Foxconn, the world’s largest contract electronics manufacturer and a major supplier to Nvidia and Apple, maintained its outlook for “strong” revenue growth for the full year. The company does not provide specific numerical forecasts but said AI-related demand is expected to remain a key growth driver through the year.
The results follow a 40 per cent year-on-year increase in Foxconn’s second-quarter revenue reported in July, highlighting the growing contribution of AI server-related business to the company’s operations.
Foxconn is also expanding its global manufacturing footprint. While a large share of Apple’s iPhones are still assembled in China, the company now manufactures most of the iPhones it supplies to the US market in India. It is also developing production facilities in Mexico and Texas to manufacture AI servers for Nvidia.
Beyond electronics and AI infrastructure, Foxconn is seeking to increase its presence in the electric vehicle sector as part of efforts to diversify its business.
Foxconn’s shares have gained around 17 per cent so far this year, trailing the broader Taiwan stock market, which has risen about 57 per cent. The company’s shares closed 2.7 per cent higher on Wednesday ahead of the earnings announcement.
