Foxconn, a key supplier for Apple, announced a 6% increase in its second-quarter net profit, driven by robust demand for AI servers. The Taiwanese electronics manufacturing giant, also known as Hon Hai Precision Industry, reported a net profit of NT$35.05 billion (USD 1.09 billion) for the April to June period, up from NT$33 billion in the same quarter last year, surpassing analysts' expectations of NT$34.29 billion.
This marks Foxconn's fourth consecutive quarterly profit growth, bolstered by its AI server business, which now constitutes over 40% of its server operations. The company's next-generation AI computing solutions have significantly contributed to this growth, positioning Foxconn to capitalise on the technology boom.
While the company's revenue from smart computer electronics, including smartphones, remained relatively flat, Foxconn anticipated a gradual uptick in operations for the second half of the year. This expectation aligns with the typical release of new products by electronics vendors, including Apple, ahead of the year-end holiday season.
In light of the strong performance in AI servers and the anticipated demand for new iPhones, Taipei-based KGI Securities revised its sales forecast for Foxconn, predicting a better-than-expected outlook for the second half of the year.