Foxconn Q2 profit surges 35% on AI server demand

Taiwanese technology giant Foxconn reported a 35 percent surge in second-quarter net profit on Wednesday, driven by explosive demand for artificial intelligence servers, and forecast strong growth for the remainder of the year. The company, formally known as Hon Hai Precision Industry, said net profit for the April to June period reached NT$59.97 billion, approximately $1.86 billion, surpassing analyst expectations. The result marked a significant increase from the NT$44.4 billion profit recorded in the same quarter of the previous year.

The world's largest contract electronics manufacturer attributed its performance to the booming AI infrastructure market. "AI infrastructure is driving growth," the company stated in its earnings announcement. Foxconn, which is Nvidia's largest server manufacturer and Apple's top iPhone assembler, has seen its business turbocharged as governments and technology companies invest heavily in data centers to train and run AI tools. Cloud and networking products, the segment that includes AI servers, accounted for 51 percent of the company's revenue in the second quarter, the first time this category has exceeded half of total sales.