Foxconn Revenue Soars 40% on Strong AI Demand

Taiwan’s Foxconn reported a 39.8% increase in its second-quarter revenue on Sunday, beating market predictions due to a sharp rise in demand for artificial intelligence infrastructure.

Credit: Foxconn

The contract electronics manufacturer and primary server builder for Nvidia announced that revenue for the April-June period reached T$2.513 trillion ($78.71 billion). This figure exceeded the T$2.372 trillion average projection from an LSEG SmartEstimate, which weights forecasts from the most accurate analysts.

Strong buying of AI equipment generated rapid growth for the company's cloud and networking products division. The smart consumer electronics division, which handles assembly for Apple iPhones, also recorded growth during the same three-month window.

Sales figures for the single month of June jumped 52.1% compared to the same period last year, hitting a monthly record of T$821.8 billion.

Foxconn, formally named Hon Hai Precision Industry Co., expects operations to expand both quarter-on-quarter and year-on-year in the third quarter. Executives predict that shipments of AI racks will sustain this upward trend as the tech sector enters its traditional peak season.

The manufacturer issued a warning alongside its positive earnings, pointing out potential risks in the international political environment.

Foxconn released an official statement on Sunday outlining its forward outlook.

"it remains necessary to monitor the impact of the volatile global political and economic situation"

Corporate representatives did not provide further details regarding specific geopolitical concerns. The firm historically avoids giving numerical financial forecasts in its preliminary monthly and quarterly revenue releases.

Global technology firms including Alphabet, Amazon, Meta, and Microsoft plan to spend about $725 billion on AI infrastructure this year. This surge in infrastructure investment directly benefits hardware manufacturers like Foxconn, which holds a 40% global market share in AI server rack assembly.

Foxconn stock closed 0.6% higher on Friday before the company made the data public, matching a flat performance by the broader Taiwan benchmark index. Foxconn shares have grown 4.3% since the start of the year, tracking behind a 61.5% surge in the wider Taiwan stock market.