Foxconn Reports Strong Q2 Revenue Growth, Driven by AI Server Demand

Apple’s (NASDAQ:AAPL) primary iPhone assembler, Foxconn (Hon Hai Precision Industry Co Ltd), reported quarterly revenue that exceeded expectations, driven by strong demand for AI servers and projected continued growth for the upcoming quarter.

Foxconn announced that its revenue for the last month was T$490.7 billion ($15.12 billion), reflecting a 16.1% increase from the previous year and marking the second-highest level for this period.

In Q2 the company saw a revenue surge of 19.1% year-on-year, reaching T$1.55 trillion. This surpassed the T$1.51 trillion forecast by Wall Street analysts.

The company's strong Q2 performance was attributed to significant demand for AI servers in its cloud and networking products segment, showcasing substantial growth both year-on-year and quarter-on-quarter. However, revenue from smart consumer electronics, including smartphones, remained unchanged from the previous year, without further elaboration. Looking forward, Foxconn anticipates Q3 revenue to increase both year-on-year and quarter-on-quarter.

With the second half of the year marking the peak season, Foxconn expects its operations to gain momentum. The third quarter traditionally signals the start of a busy period for Taiwan's tech firms as they boost production of smartphones, tablets, and other electronics for major vendors like Apple, aiming to meet the year-end holiday demand in Western markets.