Foxconn says third quarter to outperform market expectations on AI strength

TAIPEI, Sept 5 (Reuters) - On Saturday, Foxconn stated that its performance in the third quarter is anticipated to surpass market expectations, driven by strong AI-related demand. The Taiwanese contract electronics maker, however, expressed caution regarding the "volatile" global political landscape.

Foxconn, which serves as Nvidia's largest server manufacturer and a key Apple supplier, has significantly benefited from the artificial intelligence trend. Last month, the company reported a 35% increase in second-quarter profit, exceeding analyst projections.

"In the third quarter, as AI demand continues to grow, and ICT products also enter the peak season of the second half of the year, operations are expected to gradually gain momentum," the company said in a statement, referring to information and communication technology.

"Currently, the company’s visibility for the third quarter has improved compared to the previous month, with overall performance expected to outperform market expectations," it added, without offering further specifics.

Nevertheless, Foxconn emphasized the ongoing need to "monitor the impact of the volatile global political and economic situation," though it did not elaborate on this point.

Foxconn, formally known as Hon Hai Precision Industry, refrains from providing numerical financial forecasts.

The company disclosed that revenue for last month rose 51.98% year-over-year to T$921.8 billion ($29.15 billion), marking its highest-ever level for August and the second consecutive month exceeding T$900 billion.

Foxconn’s shares closed up 3.4% on Friday prior to the release of the revenue data, outperforming the broader market’s 1.5% gain.

($1 = 31.6210 Taiwan dollars)