Foxconn (Hon Hai), the Taiwanese company that is a key server supplier to Nvidia, posted strong second-quarter results, extending its solid performance driven by the artificial intelligence (AI) boom.
According to Reuters and other outlets Tuesday, Foxconn's second-quarter revenue reached 2.513 trillion Taiwan dollars (about 120.0711 trillion won), surging approximately 39.8% from a year earlier. The figure exceeded the market forecast of 2.37 trillion Taiwan dollars. Revenue for last month alone came to 821.8 billion Taiwan dollars, jumping 52.1% from a year earlier.
Explosive AI demand was the driving force behind the strong results. Foxconn said, "AI demand drove revenue growth in the cloud and networking products segment." The company also forecast that operating results would all grow in the third quarter as racks housing AI servers maintain their growth trend. Foxconn's revenue has continued its upward trend, rising about 22% year-on-year in the fourth quarter of last year and 29% in the first quarter of this year.
Well known as the manufacturer of Apple's iPhone, Foxconn signed supply contracts with Nvidia for AI servers and equipment in 2023, and is now more often described as a key Nvidia supplier. The share of the cloud and network business in Foxconn's total revenue rose sharply from 30% in 2024 to 40% last year. By contrast, the share of the smart consumer electronics business, including iPhones, shrank from 46% to 38% over the same period. The AI server business has effectively become the center of growth. Foxconn said, "The smart consumer electronics segment, including iPhones, is also recording considerable growth."
