Foxconn says third quarter to outperform market expectations on AI strength
Foxconn, Nvidia's biggest server maker and a major Apple supplier, has been a big beneficiary of the trend towards AI, reporting last month a 35% rise in second-quarter profit that beat analyst forecasts.
Taiwanese contract electronics manufacturer Foxconn anticipates its third-quarter results will surpass market projections due to robust AI-related demand, according to the company's statement on Saturday. However, Foxconn cautioned that global political volatility could impact operations. Foxconn, Nvidia's leading server manufacturer and a major supplier to Apple, has thrived on the AI trend, with its second-quarter profit rising by 35% - exceeding analysts' expectations.
The company expects its third-quarter performance to gain momentum as ICT products enter the peak season of the second half year. Foxconn's visibility for the third quarter has improved compared to the previous month, with overall performance projected to outperform market expectations, though without providing specific details.
The company emphasized the need to monitor the effects of the unpredictable global political and economic climate. Foxconn, also known as Hon Hai Precision Industry, does not provide numerical forecasts. Its revenue increased by 51.98% from a year ago to T$921.8 billion ($29.15 billion) in August, marking the highest revenue ever for that month and the second consecutive month surpassing T$900 billion.
Foxconn's shares rose 3.4% on Friday, outperforming the broader market's 1.5% gain, prior to the revenue data release.
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