Hon Hai Group headquarters in Taipei, Taiwan.
Ceng Shou Yi Nurphoto Getty Images
Apple suppliers Foxconn reported on Wednesday a 6% rise in second-quarter net profit, driven by strong AI server demand as the company cited “strong growth momentum” from the tech boom.
The Taiwanese company, the world’s largest contract electronics maker, said its net profit for the April-June quarter rose to 35.05 billion New Taiwan dollars ($1.09 billion) from NT$33 billion in the same period a year earlier.
That beat analysts’ average estimate of NT$34.29 billion.
This is the company’s consecutive quarterly profit increase.
The company said AI servers accounted for more than 40% of its server business in the second quarter, saying its next-generation AI computing solutions have brought “strong growth momentum.”
Foxconn had previously expected revenue for the second quarter to grow significantly from the previous year, although the revenue from smart computer electronics including smartphones is likely to be flattish.
The company, officially called Hon Hai Precision Industry Co Ltd, had expected its operations to start gradually in the second half as many electronics vendors including Apple usually release new products before the year-end holiday season.
In a report ahead of the earnings announcement, Taipei-based KGI Securities revised its sales forecast for Foxconn this year, saying strong demand for the iPhone and new AI servers will lead to a better-than-expected outlook for the company. the second round.