Foxconn says third quarter to outperform market expectations on AI strength

Taiwanese contract electronics maker Foxconn, formally known as Hon Hai Precision Industry, said on Saturday that it expects its third-quarter results to surpass market expectations, driven by robust demand tied to artificial intelligence. According to Business Recorder, the company pointed to AI-related orders and a seasonal lift in information and communication technology products during the second half. Foxconn also said its view of the quarter had sharpened compared with a month earlier.

The company, which is Nvidia's largest server manufacturer and a significant supplier to Apple, reported a 35% increase in second-quarter profit last month that exceeded analyst forecasts. Its statement, however, struck a cautious note, flagging the need to watch the effect of unsettled global political and economic conditions, without offering specifics. Foxconn does not publish numerical forecasts.

Revenue for August climbed 51.98% from a year earlier to T$921.8 billion ($29.15 billion), the strongest August figure on record and the second straight month above T$900 billion. The shares rose 3.4% on Friday, ahead of the release of that revenue data, a gain that compared with a 1.5% increase in the broader market.