Taiwan's Hon Hai's net profit increased 6% in the second quarter, driven by the AI boom

8/14/2024 4:55 PM GMT+9

Net profit increased 6% to 35 billion Taiwan dollars (1,090 million dollars) in the second quarter financial results announced by Taiwan's Hon Hai (Hong Hai) Precision Industry, the world's largest contract manufacturer of electronic devices, on the 14th. Amid the artificial intelligence (AI) boom, demand for AI servers was strong.
It exceeded the analysts' average forecast of 34,290 million Taiwan dollars. The increase in profit continued for 4 consecutive quarters.
AI servers accounted for over 40% of the server division. He said the company's next-generation AI computing solutions had brought “strong growth momentum.”

The company anticipated that sales of smart consumer electronics products, including smartphones, would level off for the second quarter, but overall sales would increase significantly from the same period last year.
KGI Security (Taipei) revised Hon Hai's sales forecast for this year upward in a report prior to the announcement of financial results. Since strong demand for Apple's new iPhones and AI servers is expected, there is a high possibility that the outlook for the second half will exceed expectations.