Latest news with #HonHaiPrecision
South China Morning Post
14-05-2025
- Business
- South China Morning Post
Foxconn profit surges amid AI boom, but trade tensions cloud outlook
Taiwan's Foxconn , the world's largest contract electronics maker, posted a 91 per cent leap in first-quarter profit and beat the market forecast on strong demand for artificial intelligence (AI) servers, but gave a more conservative full-year outlook. Advertisement Net profit for January-March for Apple 's top iPhone assembler and Nvidia 's server maker came in at T$42.12 billion (US$1.39 billion), versus the T$37.8 billion average of 13 analyst estimates compiled by LSEG. Foxconn, formally Hon Hai Precision Industry , last month said January-March revenue jumped 24.2 per cent to a record for that quarter on strong sales of AI servers. In an earnings report, Foxconn said it should see significant on-year growth in the second quarter, with high double-digit growth year on year for AI servers and an accelerating volume production ramp-up. But for full-year revenue, it forecast significant on-year growth, downgrading the outlook from a previous prediction of strong growth. It did not elaborate and the company does not provide numerical guidance. Advertisement A Sino-US trade spat could dim prospects for Foxconn's outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash tariffs for at least 90 days.
Wall Street Journal
14-05-2025
- Business
- Wall Street Journal
Foxconn Posts Strong Profit but Lowers Guidance Amid Tariff Risks
Foxconn 2317 3.16%increase; green up pointing triangle Technology Group reported strong first-quarter results but cut its annual guidance as the world's largest contract electronics manufacturer braces for potential headwinds from newly imposed U.S. tariffs. The Taiwanese company, formally known as Hon Hai Precision Industry, said Wednesday that its net profit jumped 91% from a year earlier to 42.11 billion New Taiwan dollars, equivalent to US$1.38 billion. That beat the NT$37.15 billion consensus estimate compiled by FactSet. Its revenue rose 24% to NT$1.644 trillion. The results were likely buoyed by Foxconn clients' speeding up of shipments to the U.S. to build inventory buffers ahead of President Trump's sweeping tariffs on global trading partners. Foxconn's earnings surge was also partly due to a low base in the same period last year, when it booked a NT$17.3 billion write-down tied to its 34% stake in Japanese electronics company Sharp Corp. 6753 -2.76%decrease; red down pointing triangle Foxconn, best known for assembling Apple's iPhones, now plays an increasingly important role in building AI servers for U.S. tech giants such as Amazon and Nvidia. Cloud and networking products—including AI servers—accounted for 34% of first-quarter revenue, making them Foxconn's second-largest business segment after smart consumer electronics. Trump imposed a steep 32% levy on Taiwanese goods on April 2. Although he later announced a 90-day pause on the tariffs, Taiwan's tech manufacturers remain cautious about his next steps. Foxconn lowered its 2025 revenue guidance to stronger than last year from significantly stronger than last year. Its shares have fallen about 10% so far this year after notching a more than 70% gain in 2024. Fears about tariffs and possible overspending on AI infrastructure have weighed on the stock. Write to Sherry Qin at
Yahoo
14-03-2025
- Business
- Yahoo
Nvidia supplier Foxconn misses on profit, expects AI growth
Hon Hai Precision ( also known as Foxconn, is in focus after the Nvidia (NVDA) and Apple (AAPL) supplier reported a 13% decline in net income while also expecting artificial intelligence (AI) sales to double over the next year. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Yahoo
24-02-2025
- Business
- Yahoo
Top analyst weighs in on Apple's massive U.S. spending surprise
Apple shares moved lower in early Monday trading after the tech giant said it would pair with its key supplier to build an AI-focused data center in Texas as part of a broader plan to spend more than $500 billion in the U.S. over the next four years. Apple () Chief Executive Tim Cook, who met last week with President Donald Trump in the White House, said the spending commitment signaled it's "bullish on the future of American innovation" and will include a boost to its US Advanced Manufacturing Fund aimed at developing high-tech production skills. Trump had said last week that Cook had assured him that the new data center would be built in the U.S., and not in Mexcio, although it was unclear if there had been a previous plan to construct the facility south of the border. "We're proud to build on our longstanding U.S. investments with this $500 billion commitment to our country's future,' Cook said in a statement. 'From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we're thrilled to expand our support for American manufacturing," he added. "And we'll keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.' The new data center, expected to be completed by 2026, will house servers that support Apple Intelligence, the group's bespoke AI technology, which now powers its latest generation of iPhones and laptop computers. Taiwan-based Hon Hai Precision, which is commonly known as Foxconn and is Apple's main iPhone assembler, will also help construct the 250,000-square-foot data center, slated for the Houston area. "Previously manufactured outside the U.S., the servers that will soon be assembled in Houston play a key role in powering Apple Intelligence, and are the foundation of Private Cloud Compute, which combines powerful AI processing with the most advanced security architecture ever deployed at scale for AI cloud computing," Apple broader $500 billion spending plan includes, however, purchases from Apple suppliers, media production for its Apple TV+ division and other infrastructure tied to its Apple Intelligence rollout. Apple did not break down the amount of new spending included in its $500 billion plan, which works out to around a third of its annual revenue when spread over the four-year period. Webush analyst Dan Ives, who carries an outperform rating and $325 price target on Apple stock, called the decision a "smart strategic move at the right time." "We believe this was a strategic move by Cook & Co. to continue diversifying its manufacturing strategy in both the US and globally while also playing well into Trump's US investment theme given the $500 billion Project Stargate announced earlier this year," Ives said. "Cook continues to prove that he is 10% politician and 90% CEO, and [at] times like this he will be using his strong ties globally to make sure it's smoother waters for Cupertino ahead despite the market agita around Apple's growth initiatives with Trump heading down the tariff-threat path," he added. More AI Stocks: AI startup smashes funding round, signals big changes for health care Analyst revisits Palantir stock forecast following annual report filing Analyst who predicted Palantir rally picks best AI software stocks Late last month, Apple posted fiscal-first-quarter revenue of $124.3 billion, its highest-ever total for the three months ended in December, even as iPhone sales slipped amid the uneven rollout of the group's Apple Intelligence AI features. Apple also posted a record bottom line of $36.3 billion; per-share profit was $2.40, up 10% increase from the year-earlier period. Finance chief Kevan Parekh, meanwhile, said Apple's current-quarter revenue would likely rise in the low- to mid-single-digits percent from a year earlier. That advance likely translates to between $91.7 billion and $95.3 billion, largely in line with Wall Street's estimates. Apple shares were marked 1.04% lower in premarket trading to indicate an opening bell price of $243.06, a move that would nudge the stock into negative territory for the in to access your portfolio
