Foxconn Expects Third-Quarter Results to Beat Market Forecasts on AI Strength

On Saturday, Taiwan's Foxconn said its third-quarter results would likely beat market forecasts, citing robust demand tied to artificial intelligence, while also flagging caution over 'volatile' global politics.

As the largest server manufacturer for Nvidia and a key supplier to Apple, Foxconn has reaped significant gains from the AI boom; last month it posted a 35% year-on-year increase in second-quarter profit, surpassing analyst expectations.

In a statement, the company said that with AI demand expanding and information and communication technology (ICT) products moving into the peak season of the second half, operations should progressively pick up momentum during the third quarter.

It added that third-quarter visibility has brightened relative to a month ago and that overall performance is likely to exceed market expectations, though no specifics were provided.

Still, Foxconn stressed the need to monitor how the 'volatile' worldwide political and economic environment might affect its business, without offering further detail.

The company, formally known as Hon Hai Precision Industry, does not issue numerical guidance.

Revenue for August climbed 51.98% from a year earlier to T$921.8 billion ($29.15 billion), according to Foxconn, marking its strongest August ever and the second consecutive month above T$900 billion.

Foxconn's stock advanced 3.4% on Friday before the revenue announcement, beating the broader market's 1.5% rise.

Exchange rate: $1 = T$31.6210.