Foxconn, the Taiwan-based world’s largest contract electronics manufacturer and the main assembler of Apple’s iPhone reported quarterly revenue that beat previous expectations for the dynamic of the corresponding figure.

The mentioned result is largely due to the growing demand for artificial intelligence servers. The Taiwanese manufacturer also forecasts that revenue will continue to be on an upward trajectory in the current quarter.

It is worth noting that the third quarter is traditionally the beginning of the season for companies from Taiwan. These firms compete with each other for supplies of smartphones, tablets, and other electronics to large vendors, including Apple. The third quarter within the framework of the mentioned competition is a particularly significant period due to year-end holidays in Western markets.

Foxconn is currently moving forward confidently, among others due to the high level of demand for servers for artificial intelligence apps. The company’s client list includes Nvidia, one of the main beneficiaries of the so-called AI boom. The mentioned client Foxconn specializes in the development of graphics processing units, which are necessary for the training and subsequent functioning of artificial intelligence systems.

Foxconn expects its third-quarter revenue to increase both from the previous three-month period and compared to a year ago. The corresponding forecast is contained in the company’s official statement. The mentioned statement also notes that Foxconn expects its operations to gradually gain momentum during the peak season in the second half of the current year. At the same time, the company refrains from publishing any quantitative indicators.

Foxconn said its revenue for June was recorded at T$490.7 billion (US$15.12 billion). This figure is 16.1% higher than the result for the same period last year.

The company’s revenue for the entire second quarter of the current year amounted to T$1.55 trillion. This figure is 19.1% higher than the result for the same period in 2023. It’s worth noting that LSEG Smartstimate stipulated the company’s second-quarter revenue at T$1.51 trillion.

Foxconn’s earnings in the cloud and networking products segment were on a strong growth trajectory during the period from April to June of the current year. This positive dynamic was facilitated by the high level of demand for artificial intelligence servers.

At the same time, Foxconn’s revenue from sales of smart consumer electronics, including smartphones, for the second quarter of 2024 did not show any changes compared to a year ago.

Since the beginning of the current year, the value of the company’s shares has increased by 105%. It is worth noting that in the broader Taiwan market, the corresponding figure for the mentioned period increased by 74%.

Foxconn was founded in 1974. In addition to Apple and Nvidia products, the company also produces Canon cameras. Moreover, Foxconn makes game consoles PlayStation 3 and PlayStation 4 for Sony, Wii, and Switch for Nintendo, and Xbox 360 for Microsoft. The company also produces smartphones like Xiaomi, OnePlus, and HMD Global (under the Nokia brand). Another area of ??activity of Foxconn is the manufacturing of e-books for Amazon (Kindle), Barnes & Noble (Nook), and PocketBook International. The firm also produces motherboards for Intel Corporation, and equipment for Cisco, and carries out various orders for Dell and Hewlett-Packard.

Moreover, the company also manufactures motherboards, cases, and nettops under its own Foxconn brand.

As we have reported earlier, Foxconn to Invest $551 Million in Vietnam.