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Taiwan's Foxconn, the world's largest contract electronics maker, reported on Wednesday a 35 percent rise in second-quarter profit, beating analyst forecasts, on continued strong demand for AI, which it predicted would drive growth this year.
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Net profit for the April to June period for Nvidia's biggest server maker and Apple's top iPhone assembler was T$59.97 billion (HK$14.61 billion), versus an LSEG consensus estimate of T$58.8 billion and compared with T$44.4 billion a year earlier.
In an earnings release, it stuck to its previous forecast of "strong" growth for revenue this year and said it also saw strong AI demand driving growth throughout the year. The company does not give numeric forecasts.
Foxconn, formally called Hon Hai Precision Industry, in July reported a 40 percent year-on-year jump in second-quarter revenue.
Most of the iPhones Foxconn makes for Apple are assembled in China, but it now produces the bulk of those sold in the United States in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia.
Foxconn has also been looking to expand its footprint in electric vehicles.
Foxconn will hold its earnings call later on Wednesday in Taipei.
The company's shares have risen 17 percent so far this year, underperforming the broader Taiwan index's 57 percent gain.
Foxconn shares closed 2.7 percent higher on Wednesday ahead of the earnings release.
Reuters
