Foxconn said it should see significant year-on-year growth in the second quarter. — Reuters
TAIPEI: Taiwan’s Foxconn, the world’s largest contract electronics make says its first-quarter profit leapt 91% and beat the market forecast on continued strong demand for artificial intelligence (AI) servers.
Net profit for January-March for Apple’s top iPhone assembler and Nvidia’s server maker came in at NT$42.12bil or about US$1.39bil, versus the NT$37.8bil average of 13 analyst estimates compiled by LSEG.
Foxconn, formally Hon Hai Precision Industry, last month said January to March revenue jumped 24.2% to a record for that quarter on strong sales of AI servers.
A Sino-US trade spat could dim prospects for Foxconn’s outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash tariffs for at least 90 days.
Most of the iPhones Foxconn makes for Apple are assembled in China.
Foxconn is also building a large manufacturing facility in Mexico – another target of US President Donald Trump’s tariffs – to produce AI servers for Nvidia.
In an earnings report, Foxconn said it should see significant year-on-year (y-o-y) growth in the second quarter, with high double-digit growth y-o-y for AI servers and an accelerating volume production ramp-up.
The manufacturer does not provide numerical guidance.
Foxconn has been looking to expand its footprint in electric vehicles (EVs), which it sees as a major future growth generator.
Subsidiary Foxtron Vehicle Technologies and Japanese automaker Mitsubishi Motors last week announced the signing of a memorandum of understanding for the supply of an EV model.
Foxconn has previously said it would consider taking a stake in Nissan for cooperation.
Japan’s third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market, the United States. — Reuters
