This aerial photo shows the Foxconn headquarters in Tucheng district, New Taipei City on May 6, 2022. SAM YEH/AFP via Getty Images
Apple supplier Foxconn has reported a 6% increase in its second-quarter net profit. CNBC reported that the company cited the "strong growth momentum" brought by its next-generation AI computing solutions.
The Taiwanese tech giant, known as the world's largest contract electronics maker, announced that its net profit for the April to June quarter rose to 35.05 billion New Taiwan dollars ($1.09 billion), surpassing analysts' expectations of NT$34.29 billion ($1.06 billion). This is the company's fourth consecutive quarterly profit rise.
Foxconn attributed much of its profit growth to its AI server business, which accounted for over 40% of the company's server sales in the second quarter. While revenue from smart computer electronics, including smartphones, remained flat, the AI boom helped offset this and fueled overall growth.
The company, officially named Hon Hai Precision Industry Co Ltd, expects its operations to gain further traction in the second half of the year. This is largely due to the typical surge in product releases from major electronics vendors like Apple ahead of the year-end holiday season.
Prior to the latest earnings announcement, another Taipei-based company, KGI Securities revised its sales forecast for Foxconn. It noted strong demand for new iPhones, following Apple's AI sector, and its own AI servers. The firm also anticipates a better-than-expected performance in the latter half of the year, similar to Foxconn's prediction.
For now, Foxconn's outlook is positive, with expectations that the revenue will continue to grow significantly compared to last year.
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