Foxconn expects its third-quarter performance to exceed market expectations, supported by strong demand for artificial intelligence infrastructure and the seasonal increase in information and communications technology products.
The Taiwanese contract electronics manufacturer said its visibility for the third quarter had improved from the previous month as AI demand continued to grow.
“Currently, the company’s visibility for the third quarter has improved compared to the previous month, with overall performance expected to outperform market expectations,” Foxconn said in a statement seen by Impact Newswire.
Foxconn, formally known as Hon Hai Precision Industry, is the world’s largest contract electronics manufacturer and a major supplier to Nvidia and Apple. The company has benefited significantly from rising demand for servers and other infrastructure used to support AI applications.
Foxconn reported a 35% increase in second-quarter profit last month, exceeding analysts’ expectations. The company said AI-related demand was expected to remain a key driver of growth in the third quarter.
The company does not provide numerical forecasts, however, and did not disclose specific revenue or profit targets for the quarter.
Foxconn also cautioned that it would continue to monitor the impact of volatile global political and economic conditions, without providing details on the potential effects.
The upbeat outlook followed another strong month for the company’s sales. Foxconn said August revenue rose 51.98% year-on-year to NT$921.8 billion ($29.15 billion), marking its highest-ever revenue for the month and the second consecutive month in which monthly revenue exceeded NT$900 billion.
The strong revenue performance reflects the growing contribution of AI-related products to Foxconn’s business as technology companies expand spending on data centres and computing infrastructure.
Foxconn’s shares closed 3.4% higher on Friday, outperforming the broader Taiwanese market, which gained 1.5%, before the company released its August revenue figures.
The company’s performance is closely watched by investors because of its exposure to some of the world’s largest technology companies. Its role in manufacturing servers for Nvidia has positioned it as a major beneficiary of the global AI investment boom, while its longstanding relationship with Apple provides exposure to consumer electronics demand.
Foxconn’s latest outlook suggests that AI infrastructure spending is continuing to offset weaker or more mature areas of the electronics market.
The company nevertheless faces risks from geopolitical tensions, trade policies and fluctuations in global demand, which could affect its supply chains and customers.
For now, continued AI investment and the seasonal recovery in ICT demand are expected to provide momentum for Foxconn through the third quarter.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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