Taiwan’s Foxconn, the world’s largest contract electronics manufacturer and primary assembler of Apple’s iPhones, reported better-than-expected quarterly revenue on Friday, driven by strong demand for AI servers. The company also forecast continued growth for the current quarter.
Traditionally, the third quarter marks the beginning of a busy season for Taiwan’s tech companies, as they ramp up production of smartphones, tablets, and other electronics to meet the year-end holiday demand in Western markets.
Foxconn is also benefiting from a surge in demand for servers used in artificial intelligence applications, with key clients including AI leader Nvidia. The company expects revenue for this year’s third quarter to grow both year-on-year and compared to the previous quarter, according to a statement.
“Entering the peak season of the second half of the year, we anticipate our operation to gradually gain momentum,” Foxconn said, although it did not provide specific numerical forecasts.
Officially known as Hon Hai Precision Industry Co Ltd, Foxconn reported that revenue last month reached T$490.7 billion ($15.12 billion), marking a 16.1% increase year-on-year and the second-highest level for the same period. For the second quarter, revenue soared 19.1% year-on-year to T$1.55 trillion, surpassing the T$1.51 trillion LSEG SmartEstimate, which factors in the most accurate analyst forecasts, and setting a record high for the period.
Foxconn’s cloud and networking products segment showed strong growth year-on-year and quarter-on-quarter, driven by robust AI server demand. However, revenue for smart consumer electronics products, including smartphones, remained flat year-on-year, with no explanation provided.
Foxconn’s shares have risen 105% so far this year, outperforming the broader Taiwan market’s 31% increase. In line with the overall market, Foxconn’s shares closed flat on Friday ahead of the revenue data release.
The company is set to report its second-quarter earnings on August 14.
