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Taiwan's Foxconn (Hon Hai Precision Industry), the world's largest contract electronics manufacturer, saw its second-quarter revenue surge by nearly 40% year-on-year, driven by demand for artificial intelligence (AI) products.
According to Reuters on the 5th (local time), Foxconn announced that its second-quarter (April-June) revenue increased by 39.8% compared to the same period last year, reaching 2.513 trillion New Taiwan Dollars (approximately 120 trillion Korean Won). This figure exceeded LSEG's SmartEstimate of 2.372 trillion New Taiwan Dollars, which is weighted by analyst predictions.
The company's second-quarter operating profit and earnings per share (EPS) will be officially disclosed in its earnings release in mid-August.
Previously, in its first-quarter results, Foxconn showed improved profitability due to the expansion of its cloud and networking division, with revenue increasing by 29% year-on-year and operating profit soaring by 63%.
While Foxconn has primarily focused on contract manufacturing for Apple iPhones, in recent years, it has expanded its business to produce AI servers for NVIDIA, becoming NVIDIA's largest server manufacturer.
This strong performance was driven by the cloud and networking division, which includes AI servers, and the smart consumer electronics division, which includes iPhones, also recorded "significant" growth, the company explained.
Foxconn expects its third-quarter performance to grow both quarter-on-quarter and year-on-year as the growth trend in its AI rack business continues.
Foxconn's stock price has only risen by 4.3% this year, significantly underperforming the overall Taiwan stock market's surge of 61.5%.
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