Foxconn revenue jumps in Q2

Taiwan’s Foxconn, the world’s largest contract electronics maker, reported a 39.8 percent year-on-year rise in second-quarter revenue that beat market forecasts on strong demand for AI products, though it cautioned about “volatile” global politics.

Revenue for Nvidia’s biggest server maker and Apple’s top iPhone assembler jumped to T$2.513 trillion ($78.71 billion) in the April-June quarter, Foxconn said in a statement on Sunday.

Tap Here to Add The Daily Star As A Trusted Source

That was above a T$2.372 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate. Strong AI demand led to robust revenue growth for its cloud and networking products division, while smart consumer electronics, which includes iPhones, posted “significant” growth, the company said. June revenue alone rose 52.1 percent year-on-year to T$821.8 billion, a record for that month.

Operations are expected to grow both quarter-on-quarter and year-on-year in the third quarter, with AI racks maintaining a growth trend, the company said.

However, “it remains necessary to monitor the impact of the volatile global political and economic situation”, Foxconn said, without elaborating. Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts.

The company’s shares have gained 4.3 percent this year, underperforming the 61.5 percent rise for the Taiwan market.

The stock closed up 0.6 percent on Friday ahead of the revenue data release. The benchmark index ended the day flat.