Foxconn's Second-Quarter Profit Rose on Record Revenue

By Sherry Qin

Foxconn Technology Group reported a 6% increase in quarterly net profit as its revenue rose to a record on robust demand for artificial-intelligence servers.

The world's largest contract electronics maker, known for assembling Apple's iPhones, said Wednesday that its second-quarter net profit was 35.045 billion New Taiwan dollars, equivalent to US$1.08 billion. That beat the estimate of NT$33.73 billion in a poll of analysts by FactSet.

Quarterly revenue rose 19% from a year earlier to NT$1.551 trillion--a record for the period--supported by its cloud and networking products segment amid strong AI server demand.

The Taiwanese company, formally known as Hon Hai Precision Industry, has been taking steps in recent years to diversify its lines of business. It now plays an increasingly important role in building AI servers for U.S. giants such as Amazon and Nvidia.

Investors betting on an AI boom have sent the company's stock soaring nearly 80% this year, outperforming a more than 20% jump for the broader Taiwan market. Shares in Foxconn closed 2.5% higher ahead of the results.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

August 14, 2024 02:47 ET (06:47 GMT)

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