Foxconn said its third-quarter performance will beat market expectations as AI-related demand keeps climbing, though it flagged volatile global politics as a risk. The disclosure came alongside record August revenue and follows a strong second quarter.
Foxconn said on Saturday that its third-quarter performance is expected to outperform market expectations given strong AI-related demand, even as it cautioned over volatile global politics.
The Taiwanese contract electronics maker is Nvidia's biggest server maker and a major Apple supplier, and it has been a big beneficiary of the AI trend. It pointed to growing AI demand and the ICT sector entering its peak season in the second half of the year as reasons operations should gain momentum. The company said its visibility for the third quarter has improved compared with the previous month, without giving further detail. Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts.
Global politics remain a risk
However, the company added that it still needs to, according to Reuters: "monitor the impact of the volatile global political and economic situation". It did not elaborate on that caution.
Record August revenue
Foxconn's revenue last month rose 51.98% from a year earlier to T$921.8 billion ($29.15 billion), the highest amount ever for August and the second month in a row it has exceeded T$900 billion. Its shares closed up 3.4% on Friday, before the revenue data was released. That outperformed the broader market's 1.5% gain.
The outlook follows a strong second quarter, when Foxconn reported a 35% rise in profit that beat analyst forecasts.
Source: Investing.com
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