Foxconn Hits Record Q2 Revenue on Surging AI Demand

Taiwan’s Foxconn (TW:2317), also known as Hon Hai Precision Industry, reported record second-quarter revenue of T$1.797 trillion, marking a 15.82% year-over-year increase, fueled by booming demand for artificial intelligence products. The result surpassed analyst expectations of T$1.7896 trillion, according to LSEG.

The world’s largest contract electronics manufacturer credited its strong performance to soaring AI-driven sales, particularly within its cloud and networking division. Foxconn supplies key components to major AI firms, including NVIDIA (NASDAQ:NVDA), and continues to play a central role in the global AI supply chain.

While its smart consumer electronics division—including Apple’s (NASDAQ:AAPL) iPhone assembly business—remained relatively flat due to currency fluctuations, AI-related revenue helped offset stagnation in that segment.

June alone brought in revenue of T$540.237 billion, up 10.09% from the same month last year and setting a new record for June sales. This highlights sustained demand momentum, especially in high-performance computing and data center infrastructure.

Foxconn remains optimistic about future growth, forecasting higher revenue in the third quarter compared to both the previous quarter and the same period last year. However, the company also flagged potential risks such as global geopolitical tensions and unfavorable foreign exchange movements that could impact its performance.

As a key supplier for major tech companies and a growing force in AI hardware production, Foxconn is strategically positioned to benefit from the accelerating global shift toward artificial intelligence. Investors and analysts alike are closely watching how the company navigates currency volatility and geopolitical uncertainties while capitalizing on the AI boom.