Headquarters of Hon Hai Group in Taipei, Taiwan.
Ceng Shou Yi |. Nurphoto |
Apple Provider Foxconn reported a 6% increase in second-quarter net profit on Wednesday, driven by strong demand for AI servers, as the corporate cited “strong growth momentum” from the technology boom.
The Taiwanese company, the world’s largest contract manufacturer of electronics, said net profit rose to NT$35.05 billion (US$1.09 billion) within the third quarter from April to June from NT$33 billion in the identical period last yr.
This exceeded analysts’ average estimate of NT$34.29 billion.
This was the corporate’s fourth consecutive quarterly profit increase.
The company said AI servers accounted for over 40% of its server business within the second quarter and said its next-generation AI computing solution drove “strong growth momentum.”
Foxconn had previously expected second-quarter sales to rise significantly in comparison with the identical period last yr, but sales of smart computer electronics, including smartphones, were expected to stagnate.
The company, formerly generally known as Hon Hai Precision Industry Co Ltd, expects its operations to steadily pick up within the second half of the yr as many electronics retailers, including Apple, typically launch latest products ahead of the year-end holiday season.
In a report ahead of the outcomes, Taipei-based KGI Securities revised upward its revenue forecast for Foxconn this yr, saying strong demand for brand spanking new iPhones and AI servers would likely result in a better-than-expected forecast for the corporate within the second half of the yr.
