Foxconn says third quarter to outperform market expectations on AI strength

Foxconn, the Taiwanese contract electronics maker, said on Saturday that its third-quarter performance should come in above market expectations, supported by strong demand linked to artificial intelligence, according to Business Recorder. The company, which is Nvidia's largest server maker and a major Apple supplier, reported a 35% rise in second-quarter profit last month that exceeded analyst estimates. Its statement pointed to a gradual pickup in operations as information and communication technology products head into their busiest stretch later in the year.

The company said its view of the third quarter had become clearer than a month before, though it does not issue numerical forecasts. It also said it needed to keep watching the effects of unsettled politics and economics worldwide, without elaborating. Revenue for August climbed 51.98% year on year to T$921.8 billion ($29.15 billion), the highest figure ever recorded for that month and the second straight month above T$900 billion.

Foxconn's shares closed 3.4% higher on Friday, before the revenue data appeared, a gain that topped the 1.5% rise in the broader market. The update offers a glimpse of demand for AI-linked hardware, although it stopped short of quantifying its third-quarter outlook.