The Artificial intelligence continues to boost Foxconn's financialsThe Taiwanese electronics giant has closed the second quarter with a net income up 35%, exceeding analysts' expectations, thanks largely to sustained demand for AI infrastructure and servers. Between April and June, Hon Hai Precision Industry, the group's official name, posted profits of NT$59,97 billion, equivalent to approximately $1,86 billion. This exceeds the LSEG consensus estimate of NT$58,8 billion and represents a significant increase from the $44,4 billion in the same period last year.
Artificial intelligence becomes Foxconn's new driving force
The group, main Apple iPhone assembler, is also taking on an increasingly central role in the global race for artificial intelligence. Foxconn is in fact the largest server manufacturer for Nvidia, a business that is gaining increasing weight in the company's accounts. The company confirmed the prospects of “strong” revenue growth in 2026, without providing quantitative information, however. The expansion should once again be supported by AI-related demand, which the group believes will remain robust throughout the year.
The signs had already arrived in July, when Foxconn reported a 40% increase in second-quarter revenue year-on-year, anticipating the solid results released on Wednesday.
From Nvidia servers to iPhones, production shifts
The growth of AI is also changing Foxconn's industrial geography. The group is in fact creating new plants in Mexico and Texas intended for the production of servers for Nvidia, strengthening its production capacity in the technology infrastructure sector.
At the same time, the reorganization of the chain Apple-related manufacturing. Most iPhones made by Foxconn are still assembled in China, but the bulk of devices destined for the U.S. market are now produced in India.
This diversification isn't limited to consumer electronics and data centers. Foxconn continues to seek new opportunities in the electric vehicle sector, which it sees as one of the potential pillars of future growth.
The stock rises, but lags behind the Taiwan Stock Exchange
The better-than-expected numbers found Foxconn already in a positive market phase. Before the results were published, shares closed the session on Wednesday with a gain of 2,66%. Since the beginning of the year, stock gained about 17%, a significant performance, but much lower than that of the Taiwanese market as a whole. Over the same period, the benchmark Taiwan Stock Exchange index gained approximately 57%.
Investors' attention is now turning to the earnings conference call scheduled for Taipei, which could provide further insights into demand for AI servers and the group's prospects for the second half of the year.
