Key Takeaways
- Foxconn expects third-quarter performance to exceed market expectations.
- The company cites strong AI-related demand as a key factor.
- Revenue in August reached T$921.8 billion, the highest for the month.
Taiwanese contract electronics maker Foxconn has announced that its third-quarter performance is expected to outperform market expectations, driven by strong demand for artificial intelligence (AI) products.
In a statement, Foxconn highlighted the growing AI market as a significant contributor to its improved financial outlook, following a 35% rise in second-quarter profit that surpassed analyst forecasts.
The company noted that information and communication technology (ICT) products are entering their peak season in the second half of the year, which is expected to boost operations.
Foxconn, which is Nvidia’s largest server maker and a major supplier to Apple, has been benefiting from the trend towards AI, with its second-quarter profit rising 35%.
The company reported that its revenue in August increased by 51.98% year-on-year to T$921.8 billion, marking the highest amount for the month and the second consecutive month it has exceeded T$900 billion.
Despite the positive outlook, Foxconn warned that it is necessary to monitor the impact of volatile global political and economic situations, which could still pose challenges.
Foxconn’s shares closed up 3.4% on the day before the revenue data was released, outperforming the broader market’s 1.5% gain.
The company, formally known as Hon Hai Precision Industry, did not provide specific numerical forecasts but emphasized the improved visibility for the third quarter compared to the previous month.
