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.