Foxconn Q1 Profit Surges 72% on AI Server Demand Amid Trade Uncertainty

Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, is expected to report a 72% surge in first-quarter net profit, driven by strong demand for artificial intelligence servers. According to a consensus from 13 analysts polled by LSEG, the company’s January-March profit likely reached T$37.8 billion ($1.25 billion), up from T$22.01 billion a year earlier.

Foxconn, formally known as Hon Hai Precision Industry, said last month that Q1 revenue rose 24.2% year-over-year—a record for the quarter—thanks to booming AI server sales. The company assembles most of Apple’s iPhones in China and produces Nvidia’s servers, positioning it as a key player in both the smartphone and AI hardware markets.

However, ongoing geopolitical tensions and global trade policy uncertainty pose risks to Foxconn’s 2025 outlook. Despite a 90-day truce between Washington and Beijing to reduce tariffs, concerns persist over Foxconn’s heavy manufacturing exposure in China. The company is diversifying production by building a major AI server plant in Mexico, another country targeted by U.S. tariffs.

Foxconn is also expanding into electric vehicles, which it sees as a long-term growth engine. Last week, Foxconn subsidiary Foxtron signed a memorandum of understanding with Mitsubishi Motors to supply an electric vehicle model. Additionally, Foxconn has expressed interest in a strategic stake in Nissan to support EV collaboration.

The company’s earnings call is scheduled for 3 p.m. Taipei time (0700 GMT) on Wednesday, during which Foxconn is expected to provide updates on its full-year outlook. Foxconn shares are down 14% year-to-date, underperforming the broader Taiwan index, which has fallen 7%.