Taiwan's Foxconn has reported second-quarter net profit that beat analyst expectations, as surging demand for AI servers for data centers fueled the company's growth.
Specifically, from April to June, Foxconn's net profit reached NT$59.97 billion (equivalent to $1.86 billion), up 35% year-on-year. This figure exceeded the NT$58.38 billion estimate from analysts surveyed by Bloomberg.
In its earnings statement, Foxconn affirmed: "AI infrastructure is the growth driver." The company also maintained its forecast for "strong growth" in revenue this year.
Foxconn is the largest server manufacturer for Nvidia and a key iPhone assembly partner for Apple. The surge in spending by governments and tech giants on building data centers to train and operate AI tools such as chatbots, image generators, and AI agents has brought significant revenue to the company.
Earlier, in July, Foxconn (officially Hon Hai Precision Industry) reported a 40% year-on-year increase in second-quarter revenue.
Most of the iPhones Foxconn produces for Apple are assembled in China, but the company now manufactures the majority of iPhones sold in the U.S. in India. Additionally, the company is building plants in Mexico and Texas (U.S.) to produce AI servers for Nvidia.
Foxconn is also seeking to expand into electric vehicles. The company's shares have risen 17% so far this year, lower than the 57% gain of the broader Taiwan market index. Before the earnings release, Foxconn shares closed up 2.7% on August 14.
