Taiwan's Foxconn, the world's largest contract electronics manufacturer, reported a nearly 40% jump in second-quarter revenue, driven by strong demand for artificial intelligence (AI) infrastructure and a rebound in its consumer electronics business.
The company, the biggest AI server supplier to Nvidia and Apple's largest iPhone assembler, posted April-June revenue of T$2.513 trillion ($78.71 billion), up 39.8% from a year earlier. The figure topped the T$2.372 trillion consensus estimate compiled by LSEG SmartEstimate.
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According to a Reuters report, Foxconn said robust demand for AI products boosted its cloud and networking business, while its smart consumer electronics segment, which includes iPhone assembly, also recorded significant year-on-year growth.
Revenue in June alone climbed 52.1% from a year earlier to T$821.8 billion, marking the highest-ever June revenue for the company.
Looking ahead, Foxconn expects business to expand both sequentially and from a year ago in the third quarter, with demand for AI server racks continuing to support growth.
However, the company struck a cautious note on the broader environment. "It remains necessary to monitor the impact of the volatile global political and economic situation," Foxconn said in a statement, without elaborating further.
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Foxconn, formally known as Hon Hai Precision Industry, does not issue numerical financial guidance.
Despite the strong quarterly performance, Foxconn shares have gained 4.3% so far this year, trailing the 61.5% rise in Taiwan's benchmark stock index. The stock ended 0.6% higher on Friday ahead of the revenue announcement.
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