Taiwan’s Foxconn posted a stronger-than-expected 39.8% year-on-year increase in second-quarter revenue, driven by booming demand for artificial intelligence (AI) products, even as the company warned of uncertainty from the volatile global political and economic environment according to Reuters.
The world’s largest contract electronics manufacturer reported revenue of T$2.513 trillion (US$78.71 billion) for the April-June quarter, surpassing the T$2.372 trillion forecast by LSEG SmartEstimate.
Foxconn, the largest AI server manufacturer for Nvidia and a key assembler of Apple’s iPhones, said robust AI demand significantly boosted its cloud and networking products division. Its smart consumer electronics segment, which includes iPhone production, also recorded significant growth.
June revenue alone surged 52.1% from a year earlier to a record T$821.8 billion for the month.
Looking ahead, Foxconn said it expects both quarter-on-quarter and year-on-year growth in the third quarter, supported by continued momentum in AI server rack shipments.
However, the company cautioned that it remains necessary to closely monitor the impact of an increasingly volatile global political and economic landscape.
Foxconn, formally known as Hon Hai Precision Industry, does not provide numerical financial guidance.
Its shares have risen 4.3% so far this year, lagging the broader Taiwan market’s 61.5% gain. The stock closed 0.6% higher on Friday ahead of the revenue announcement, while the benchmark index finished the session flat.
