Foxconn anticipates continued growth driven by AI servers demand

Taiwan's Foxconn, a major player in the electronics manufacturing industry and a key partner of Apple, has announced impressive quarterly revenue figures. The company's revenue exceeded expectations, propelled by the increasing demand for AI servers. This positive performance has led Foxconn to anticipate continued growth in the upcoming quarter.

As the third quarter kicks off, Taiwanese tech companies like Foxconn are gearing up to meet the high demand for smartphones, tablets, and other electronic devices from clients such as Apple, in preparation for the holiday season in Western markets.

One of the key factors driving Foxconn's growth is the surging need for servers used in AI applications. Notable customers, including Nvidia, a leading player in the AI sector, have contributed to Foxconn's optimistic outlook for the third quarter, with expected revenue growth compared to previous periods.

With the peak season approaching in the latter half of the year, Foxconn foresees a gradual increase in its operations. In the last month, the company achieved a revenue of T$490.7 billion ($15.12 billion), marking a significant 16.1% year-on-year growth and reaching the second-highest level for the same period.

During the second quarter, Foxconn's revenue soared by 19.1% year-on-year to T$1.55 trillion, surpassing analyst predictions and setting a new record. The growth was particularly notable in the cloud and networking products segment, driven by the strong demand for AI servers.

Despite this overall growth, revenue from smart consumer electronics, including smartphones, remained steady year-on-year, with Foxconn not providing a specific explanation for this trend. The company's shares have seen a remarkable 105% increase this year, outperforming the broader Taiwan market's 31% rise.

Although Foxconn's shares closed flat before the revenue data release, the company is set to announce its second-quarter earnings on Aug. 14, providing further insights into its financial performance.

Foxconn's robust revenue growth, driven by the demand for AI servers and strong performance in cloud and networking products, showcases its position as a key player in the global electronics manufacturing industry. With continued optimism for the upcoming quarter and a track record of exceeding expectations, Foxconn remains a company to watch in the evolving tech landscape.