Taiwan’s Foxconn reports 35 percent rise in profit on AI demand
Summary
Taiwan’s company Foxconn reported a 35 percent profit increase in the second quarter, driven by strong demand for AI servers used in data centers. The company, which assembles iPhones and makes servers for Nvidia, expects continued strong revenue growth this year.Key Facts
- Foxconn's net income rose 35 percent to about $1.86 billion in April-June 2024.
- This profit exceeded analyst estimates of 35.38 billion New Taiwan dollars.
- Growth is mainly due to increased demand for AI infrastructure, like servers for data centers.
- Foxconn is Nvidia’s largest server maker and a top assembler of Apple iPhones.
- The company makes most iPhones sold in the US in India and is building factories in Mexico and Texas to make AI servers.
- Foxconn is also expanding into making electric vehicles.
- Its shares have increased 17 percent this year, but less than Taiwan’s overall stock market rise of 57 percent.
- On the day of earnings, Foxconn shares rose 2.7 percent before the report was released.
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