Foxconn, the world’s largest contract electronics manufacturer and key Apple partner, reported better-than-expected quarterly revenue driven by robust demand for AI servers. The company anticipates continued growth in the current quarter, traditionally a peak period for supplying electronics to Western markets ahead of the year-end holidays.
In a statement, Foxconn highlighted, “Entering the peak season of the second half of the year, we anticipate our operation to gradually gain momentum.”
For the third quarter, Foxconn projects revenue growth both year-on-year and sequentially, buoyed by strong demand from customers like Nvidia in the AI sector. Last month, the company achieved T$490.7 billion ($15.12 billion) in revenue, marking a 16.1% increase from the previous year and the second-highest level for the same period.
While revenue from cloud and networking products saw significant year-on-year and quarter-on-quarter growth due to AI server demand, revenue from smart consumer electronics, including smartphones, remained flat year-on-year.
Foxconn’s shares have surged 105% this year, surpassing the broader Taiwan market’s 31% increase. The company is set to announce its second-quarter earnings on August 14.
