Latest news with #HonHaiPrecisionIndustry
Yahoo
7 days ago
- Business
- Yahoo
Apple Supplier Foxconn Doubles Down On AI: Server Sales Now 41% Of Revenue
Aug 14 - Foxconn (FXCOF) Hon Hai Precision Industry (the world's largest iPhone maker) leans into AI with a blockbuster quarter and an ambitious expansion plan. The company posted NT$1.79 trillion ($59.7B) in revenue for Q2 and net income of NT$44.36 billion, beating SmartEstimates. More important: server products for AI workloads now drive the business, accounting for 41% of sales versus 35% from consumer electronics. Warning! GuruFocus has detected 8 Warning Signs with FXCOF. Foxconn expects AI-server revenue to surge more than 170% year-over-year this quarter as demand for Nvidia (NASDAQ:NVDA)-powered infrastructure climbs. Management also reported operating profit of NT$56.6 billion, above forecasts, and flagged further growth as it expands data-center work and takes a stake in TECO to support industrial-scale AI builds. Geopolitics complicate the picture: trade tensions and tariff threats pushed Foxconn to move much iPhone final assembly to India and spur a $1 billion North America investment plan from a subsidiary to blunt U.S. tariff risk. Still, Foxconn shows pivoting power, it shifts from phone assembly toward AI servers, EV assembly and semiconductor bets, aiming to turn hardware muscle into long-term cloud and AI revenue. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
7 days ago
- Business
- CNBC
AI demand boosts iPhone maker Foxconn's second-quarter profit by 27%, beating forecasts
Taiwan's Foxconn, the world's largest contract electronics maker, reported Thursday that its second-quarter operating profit rose 27% year over year, as it leans into its artificial intelligence server business. Here's how Foxconn did in the second quarter of 2025 compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate: The company's net profit for the second quarter came in at NT$44.36 billion, beating LSEG's SmartEstimates of NT$38.81 billion. Foxconn, formally called Hon Hai Precision Industry, is the world's largest manufacturer of Apple's iPhones, and has been looking to replicate its success in consumer electronics in the world of AI. The firm manufactures server racks designed for AI workloads and has become a key partner to American AI chip darling Nvidia. On July 30, Foxconn announced that it was taking a stake in industrial motor maker TECO Electric & Machinery in a strategic partnership to build AI data centers. The company has also shown its willingness to expand into new areas, including the assembly of electric vehicles and even the manufacturing of semiconductors. However, U.S. President Donald Trump's global tariffs could impact Foxconn's outlook this year. In response to Trump's tariff threats, the company has already moved most of its final production of made-for-the-U.S. iPhones to India. Foxconn reported Aug. 5 that its July revenue hit a record for the month, driven by strong demand for AI products. The firm said it expected the third quarter would see further revenue growth, but noted that the impact of "evolving global political and economic conditions" would be closely monitored.
Reuters
7 days ago
- Business
- Reuters
AI demand propels electronics giant Foxconn's second-quarter profit
TAIPEI, Aug 14 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker, posted a 27% rise in second-quarter profit, beating market forecasts, on strong demand for artificial intelligence servers. Net profit for the April-June period for Nvidia's (NVDA.O), opens new tab biggest server maker and Apple's (AAPL.O), opens new tab top iPhone assembler was T$44.4 billion ($1.48 billion), higher than the consensus estimate of T$38.8 billion compiled by LSEG. Foxconn, formally called Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products but cautioned about geopolitical and exchange rate headwinds. In its earnings report, Foxconn said it should see significant year-on-year revenue growth in the third quarter, with AI server revenue expected to leap more than 170% year-on-year. For its full-year revenue, it forecast significant year-on-year growth, in line with previous guidance given in May. It did not elaborate and the company does not provide numerical guidance. In the second quarter, revenue for its cloud and networking business, which includes AI servers, exceeded that from smart consumer electronics - such as iPhones - for the first time. Global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the United States are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, that it purchased in 2022 to manufacture EVs. However, it will continue to occupy the facility and a source familiar with the matter said it could support artificial intelligence data centres. Foxconn has also expanded beyond its traditional role as an iPhone assembler into other areas too. Last month it formed a strategic partnership with industrial motor maker TECO Electric & Machinery ( opens new tab to build data centres. Foxconn will hold its earnings call at 3 p.m. (0700 GMT) in Taipei on Thursday, where it will also update its outlook for the year. Foxconn's shares have risen 8.4% so far this year, outperforming the broader Taiwan index's (.TWII), opens new tab 5.2% gain. Its shares closed up 0.5% on Thursday ahead of the earnings call. ($1 = 29.9600 Taiwan dollars)
Time of India
14-08-2025
- Business
- Time of India
AI demand expected to boost electronics giant Foxconn's second-quarter profit
Academy Empower your mind, elevate your skills Taiwan's Foxconn, the world's largest contract electronics maker, is expected to report on Thursday that second-quarter profit rose 11% on continued strong demand for artificial intelligence formally called Hon Hai Precision Industry , last month reported record second-quarter revenue on strong demand for AI products but cautioned about geopolitical and exchange rate headwinds. Global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the United States are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for its July sales report, Foxconn said while the third quarter should see on-year growth - the company does not provide numerical guidance - the impact of "evolving global political and economic conditions" would need continued close has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, but said it would continue to use the site to make a broader range of products aligned with its strategic has expanded beyond its traditional role as an iPhone assembler in other areas too. Last month it formed a strategic partnership with industrial motor maker TECO Electric & Machinery to build data holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Thursday, where it will also update its outlook for the shares have risen 7.9% so far this year, outperforming the broader Taiwan index's 5.8% gain.
Yahoo
13-08-2025
- Business
- Yahoo
AI demand expected to boost electronics giant Foxconn's second-quarter profit
By Wen-Yee Lee TAIPEI (Reuters) -Taiwan's Foxconn, the world's largest contract electronics maker, is expected to report on Thursday that second-quarter profit rose 14% on continued strong demand for artificial intelligence servers. Net profit for April-June for Apple's top iPhone assembler and Nvidia's server maker likely came in at T$39.8 billion ($1.33 billion), up from T$35.05 billion a year earlier. Foxconn, formally called Hon Hai Precision Industry, last month reported record second-quarter revenue on strong demand for AI products but cautioned about geopolitical and exchange rate headwinds. Global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing this week extended a tariff truce for another 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China, but the bulk of those sold in the United States are now produced in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia. In its July sales report, Foxconn said while the third quarter should see on-year growth - the company does not provide numerical guidance - the impact of "evolving global political and economic conditions" would need continued close monitoring. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly. Earlier this month, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, but said it would continue to use the site to make a broader range of products aligned with its strategic priorities. Foxconn has expanded beyond its traditional role as an iPhone assembler in other areas too. Last month it formed a strategic partnership with industrial motor maker TECO Electric & Machinery to build data centres. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Thursday, where it will also update its outlook for the year. Foxconn's shares have risen 7.9% so far this year, outperforming the broader Taiwan index's 5.8% gain. ($1 = 30.0020 Taiwan dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
