Foxconn forecasts Q3 results will surpass expectations driven by AI growth

Foxconn, the Taiwanese contract electronics manufacturer formally known as Hon Hai Precision Industry, said on Saturday that it expects its third-quarter performance to beat market expectations, buoyed by robust demand for artificial intelligence-related products. The company, which serves as Nvidia’s largest server maker and is a key supplier to Apple, cited continued AI momentum and the seasonal uptick in information and communication technology (ICT) products as major growth drivers heading into the second half of the year.

"In the third quarter, as AI demand continues to grow, and ICT products also enter the peak season of the second half of the year, operations are expected to gradually gain momentum," Foxconn said in a statement. The company noted that its business visibility for the third quarter has improved compared to the prior month, with overall performance anticipated to surpass market forecasts. However, Foxconn did not provide detailed financial forecasts, which is consistent with its traditional policy.

The upbeat outlook follows a strong showing in the previous quarter, when Foxconn reported a 35 percent rise in second-quarter profit, exceeding analysts’ expectations. Last month, the company announced that its August revenue surged by nearly 52 percent year-on-year, reaching T$921.8 billion (USD 29.15 billion). This represented the highest August revenue in Foxconn’s history and marked the second consecutive month that the company’s monthly revenue exceeded T$900 billion.

Despite the positive financial and operational trends, Foxconn offered a note of caution regarding geopolitical and economic uncertainties. The company stated that it remains necessary to “monitor the impact of the volatile global political and economic situation,” though it did not elaborate on specific risks.

Shares of Foxconn closed 3.4 percent higher on Friday, ahead of the latest revenue announcement, outperforming the broader Taiwanese market’s 1.5 percent gain. The strong stock performance reflects investor optimism about Foxconn’s ability to capitalize on accelerating AI demand and the seasonal ramp-up in technology hardware.

Foxconn’s positive forecast underscores the company’s central role in the global supply chain for advanced electronics and AI infrastructure. As AI adoption expands and demand for servers and ICT equipment rises, Foxconn appears well positioned to benefit, even as it continues to watch potential risks stemming from global political and economic volatility.