Foxconn Q2 sales surge 40% to top W120tr on AI server boom

Foxconn, the world's largest contract electronics manufacturer, posted second-quarter sales roughly 40 percent higher than a year earlier, driven by surging demand for AI servers.

The Taiwanese company — formally known as Hon Hai Precision Industry — recorded second-quarter sales of 2.51 trillion Taiwan dollars (about 120 trillion won) for the April-to-June period, up 39.8 percent from a year ago, according to Reuters on Sunday. The result topped LSEG's SmartEstimate of 2.37 trillion Taiwan dollars.

Detailed earnings figures, including operating profit and earnings per share, are scheduled for release in mid-August.

Foxconn had already demonstrated improving profitability in the first quarter, when sales rose 29 percent year-on-year and operating profit jumped 63 percent, reflecting gains from its expanding cloud and networking business.

The company built its reputation as a contract manufacturer for Apple's iPhone but has spent years aggressively scaling up production of Nvidia's AI servers, establishing itself as Nvidia's largest server manufacturer worldwide.

The latest results were led by the cloud and networking segment, which includes AI servers, while the smart consumer electronics segment — home to the iPhone — also recorded what the company described as "significant" growth.

Foxconn said it expects third-quarter earnings to grow both from the previous quarter and from a year earlier, citing continued momentum in its AI rack business.

Foxconn's share price has gained just 4.3 percent this year, sharply lagging the broader Taiwan stock market, which has surged 61.5 percent.