Strong AI Market Lifts Foxconn's Earnings
Foxconn, officially known as Hon Hai Precision Industry, is poised to report a significant 14% year-over-year rise in its second-quarter net profit, driven largely by growing global demand for artificial intelligence servers. As the world's leading contract electronics maker and a key assembler for Apple, Foxconn is expected to announce a net profit of T$39.8 billion (approximately $1.33 billion) for the April-June quarter, surpassing last year's T$35.05 billion result.
Leading Partnerships and Global Expansion
Foxconn's position as a major supplier for
Nvidia has been instrumental in its revenue growth. The robust market for AI infrastructure has pushed the company to achieve record-breaking second-quarter revenues, despite challenges from geopolitical tensions and fluctuating exchange rates.
- Most iPhones produced by Foxconn for Apple are assembled in China.
- An increasing share of iPhones for the U.S. market is now made in India.
- Foxconn is constructing new manufacturing facilities in Mexico and Texas, specifically to meet demand for AI servers supplied to Nvidia.
Geopolitical and Economic Headwinds
Despite its strong performance, Foxconn remains cautious about its outlook, citing uncertainties in global trade and the lingering impact of tariffs. A recent 90-day extension of the tariff truce between Washington and Beijing offers temporary relief, but the company is mindful of continued risks owing to its significant manufacturing footprint in China.
Stock Market Performance and Investor Sentiment
Foxconn’s robust results have translated to a positive performance on the stock market, with its shares appreciating 7.9% so far this year—outpacing the broader Taiwan index, which has gained 5.8% during the same period.
Upcoming Earnings Call
Foxconn is scheduled to hold its quarterly earnings call at 3 p.m. (0700 GMT) in Taipei, where management is expected to provide further insights into its full-year outlook and strategic directions in AI and other growth sectors.
