Foxconn’s profit beats forecasts, driven by AI boom
The Taiwanese company said the development schedule for Nvidia’s GB200 chip was on track, and product delivery would start in the fourth quarter in small volumes before rising in early 2025.
Apple supplier Foxconn beat expectations with a 6% increase in quarterly net profit on the back of a boom in demand for AI servers.
The world’s largest contract electronics maker also stood by its forecast for significant growth in full-year revenue, according to a report by Reuters.
The Taiwanese company said robust demand for AI servers would continue to drive growth into the fourth quarter.
It added that the development schedule for Nvidia’s GB200 chip was on track, and product delivery would start in the fourth quarter in small volumes before rising in early 2025.
“If the schedule remains unchanged, the performance of the entire AI server segment may be better than originally estimated,” Foxconn vice president James Wu said.
Wu expressed confidence that Foxconn’s position as the leader in the AI server market space could not be challenged in the short term.
Foxconn said net profit for the April-June quarter increased to T$35.05 billion ($1.09 billion) from T$33 billion in the same period last year, exceeding analysts’ average estimate of T$34.29 billion.
It said AI servers made up over 40% of its server business in the second quarter.
The company also indicated that it was looking closely at the EV business and was in talks with two traditional automakers in Japan in this regard.
