Foxconn says third quarter to outperform market expectations on AI strength

Taiwanese contract electronics manufacturer Foxconn anticipates its third quarter will surpass market expectations due to robust AI-related demand, according to a statement released on Saturday. However, the company cautioned about the volatile global political and economic landscape.

Foxconn, Nvidia's leading server producer and a key supplier to Apple, has profited significantly from the rise of AI. In its second quarter, the company reported a 35% increase in profit, surpassing analyst projections.

For the third quarter, the company expects operations to gain momentum as AI demand continues to surge and ICT products enter the second half of the year's peak season. The company noted an improvement in its visibility for the third quarter compared to the previous month, with overall performance expected to exceed market expectations.

However, Foxconn emphasized the need to monitor the impact of the unstable global political and economic situation. The company did not provide further details.

Last month, Foxconn's revenue increased by 51.98% from the previous year, reaching T$921.8 billion ($29.15 billion), which is the highest amount ever recorded for August. This is the second consecutive month Foxconn has exceeded T$900 billion in revenue. Foxconn's shares closed up 3.4% on Friday, outperforming the broader market's 1.5% gain, before the revenue data was released.