Foxconn says third quarter to outperform market expectations on AI strength

Foxconn, Nvidia’s primary server manufacturer and a significant Apple supplier, anticipates its third-quarter results will surpass market projections due to robust AI-driven demand, the Taiwanese contract electronics company disclosed on Saturday (Sep 5). However, the firm cautioned about the "volatile" global political climate. Foxconn, Nvidia's leading server producer and a key Apple supplier, profited from the AI surge, with a 35% surge in second-quarter earnings exceeding analyst expectations in August.

Foxconn projected that operations would gradually improve as AI demand increases and the ICT sector enters the second-half peak season. The company expressed that its visibility for the third quarter has improved compared to the preceding month, with overall performance expected to outperform market expectations. However, Foxconn emphasized the need to monitor the impact of the unstable global political and economic situation.

The company did not provide numerical forecasts, only stating that August revenue increased 51.98% year-over-year to NT$921.8 billion (US$29.15 billion), the highest ever for August and the second consecutive month surpassing the NT$900 billion threshold. Foxconn's shares rose 3.4% on Sep 4, outperforming the broader market's 1.5% gain before the revenue figures were released.