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    Friday, July 5, 2024

    Foxconn Q2 Revenue Beats Market Forecast on AI Server Demand

    The company’s second-quarter revenue surpassed market projections due to increased demand for AI servers.

    Foxconn, the world’s leading contract electronics manufacturer and Apple’s primary iPhone assembler, announced better-than-anticipated quarterly revenue on Friday, driven by demand for AI servers. The company also projected sustained growth in the upcoming quarter.

    The third quarter typically marks the commencement of the production season for Taiwan’s technology enterprises, as they endeavor to fulfill orders for smartphones, tablets, and other electronic devices from prominent vendors like Apple, in preparation for the Western markets’ year-end holiday season.

    Foxconn is experiencing significant growth due to the robust demand for servers utilized in artificial intelligence (AI) applications. Among its clientele is the prominent AI company, Nvidia.

    It is anticipated that the third quarter of this year will experience revenue growth on a year-over-year basis as well as in comparison to the preceding quarter, as stated by Foxconn in an official declaration.

    "Entering the peak season of the second half of the year, we anticipate our operation to gradually gain momentum," it said.

    Numerical forecast is not available from the company.

    Hon Hai Precision Industry Co Ltd, commonly known as Foxconn, reported a substantial revenue increase of 16.1% year-over-year in the previous month. The company achieved a revenue of T$490.7 billion ($15.12 billion), marking the second-highest revenue performance for the same period in its history.

    In the second quarter, revenue experienced a substantial increase of 19.1% year-over-year, reaching T$1.55 trillion. This figure surpassed the T$1.51 trillion LSEG SmartEstimate, which places greater emphasis on forecasts from consistently accurate analysts. Notably, this revenue achievement set a new record for the corresponding period.

    In the second quarter, the cloud and networking products segment experienced substantial year-over-year and quarter-over-quarter revenue growth, primarily driven by robust demand for AI servers.

    Nevertheless, for intelligent consumer electronics products, including smartphones, revenue remained unchanged year-over-year, Foxconn stated, without offering an explanation.

    Foxconn’s stock has experienced a substantial 105% increase year-to-date, significantly outperforming the broader Taiwan market, which has witnessed a 31% gain.

    In alignment with the overall market trend, Foxconn’s shares concluded the trading day on Friday without significant fluctuations, anticipating the imminent release of its revenue data.

    The company Is scheduled to disclose its financial performance for the second quarter on August 14.

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