3 weeks ago
Foxconn posts 35% profit jump as AI boom boosts business
Foxconn is a company in Taiwan that makes phones and computers for other big companies.
It is famous for putting together iPhones for the company Apple.
It also makes big computer servers for a company called Nvidia.
Servers are very powerful computers that help run artificial intelligence, which people call AI.
Right now, many companies want to use AI, so Foxconn is getting a lot of new orders.
Because of that, Foxconn made 35% more money in the second three months of this year than it did last year.
That was even more money than experts thought it would make.
Foxconn says it expects to keep doing well because AI demand is so strong.
The company is also building new factories in Mexico and Texas to make AI computers.
Its shares even went up a little bit after the good news came out.
Foxconn reported a 35% rise in second-quarter net profit to T$59.97 billion ($1.86 billion), beating analyst forecasts.
Strong, continued demand for AI drove the profit jump, with Foxconn predicting AI would drive growth throughout the year.
The company, formally called Hon Hai Precision Industry, is Nvidia's biggest server maker and Apple's top iPhone assembler.
Foxconn produces most US-bound iPhones in India and is building factories in Mexico and Texas to make AI servers for Nvidia.
Foxconn shares have risen 17% so far this year, underperforming the broader Taiwan index's 57% gain; shares closed 2.7% higher ahead of the earnings release.
- Who
- Foxconn (Hon Hai Precision Industry), the world's largest contract electronics maker and Nvidia's biggest server maker and Apple's top iPhone assembler.
- What
- Reported a 35% rise in second-quarter net profit to T$59.97 billion ($1.86 billion), beating analyst forecasts, driven by continued strong demand for AI.
- Where
- Taiwan, where the company held its earnings call in Taipei; production spans China, India, Mexico and Texas.
- When
- On Wednesday, covering the April to June quarter.
- Why
- Continued strong demand for AI servers and products, which Foxconn expects to drive growth throughout the year.
Key facts
- Company
- Foxconn (Hon Hai Precision Industry)
- Country
- Taiwan
- Q2 net profit
- T$59.97 billion ($1.86 billion)
- Profit growth
- 35% year-on-year
- Analyst estimate (LSEG)
- T$58.8 billion consensus
- Q2 revenue growth (July report)
- 40% year-on-year
- Year-to-date share performance
- Foxconn +17% vs Taiwan index +57%
- Exchange rate
- $1 = 32.1990 Taiwan dollars
Quotes
Foxconn financial statement
Official earnings release from Foxconn
“The AI boom will drive growth this year. The company sees strong demand for AI across the year.”
firstpost.com
“Net profit for the April to June period was T$59.97 billion, up 35% from a year earlier.”
firstpost.com
Sources
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