Foxconn Reports Surge in Q1 Profit Driven by AI Server Demand, Cautious on 2025 Outlook

Electronics giant Foxconn's first-quarter profit surges 91% on year

TAIPEI, May 14 (Reuters) - Taiwan's Foxconn (2317.TW), opens new tab, the world's largest contract electronics maker, on Wednesday said first-quarter profit leapt 91% on continued strong demand for artificial intelligence servers. Net profit for January-March for Apple's (AAPL.O), opens new tab top iPhone assembler and Nvidia's <NVDA.O AI> server maker came in at T$42.12 billion ($1.4 billion), versus an LSEG consensus estimate of T$37.8 billion and compared with T$22.01 billion a year earlier. ($1 = 30.2580 Taiwan dollars) Reporting by Ben Blanchard, Wen-Yee Lee and Yimou Lee; Editing by Christopher Cushing Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Foxconn expected to post strong Q1 profit growth on AI server demand

TAIPEI, May 14 (Reuters) - Taiwan's Foxconn (2317.TW), opens new tab, the world's largest contract electronics maker, is expected to report on Wednesday that first-quarter profit leapt 72% on continued strong demand for artificial intelligence servers. Net profit for January-March for Apple's (AAPL.O), opens new tab top iPhone assembler and Nvidia's <NVDA.O AI> server maker likely came in at T$37.8 billion ($1.25 billion), according to an LSEG consensus estimate of 13 analysts, versus T$22.01 billion a year earlier. Foxconn, formally called Hon Hai Precision Industry, said last month that its first-quarter revenue jumped 24.2% to a record for that quarter on strong sales of AI servers. But global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash steep tariffs for at least 90 days. Most of the iPhones it makes for Apple are assembled in China. Foxconn is also building a large manufacturing facility in Mexico - another target of U.S. President Donald Trump's tariffs - to produce AI servers for Nvidia. In its April sales report, Foxconn said while the second quarter should see on-year growth - the company does not provide numerical guidance - the impact of "evolving global political and economic conditions" would need continued close monitoring. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator. Japanese automaker Mitsubishi Motors (7211.T), opens new tab and Foxconn subsidiary Foxtron Vehicle Technologies (2258.TW), opens new tab last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model. Foxconn has previously said it would consider taking a stake in Nissan (7201.T), opens new tab for cooperation. Japan's third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Wednesday, where it will also update its outlook for the year. Foxconn's shares have fallen 14% so far this year, hit by concerns about U.S. trade policy, compared with a 7% drop for the broader Taiwan index (.TWII), opens new tab. ($1 = 30.3070 Taiwan dollars) Reporting by Ben Blanchard; Editing by Christopher Cushing Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial IntelligenceADAS, AV & SafetySoftware-Defined VehicleSustainable & EV Supply ChainRegulatory & Policy

Foxconn expected to post strong Q1 profit growth on AI server demand

Foxconn, formally called Hon Hai Precision Industry, said last month that its first-quarter revenue jumped 24.2% to a record for that quarter on strong sales of AI servers. But global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash steep tariffs for at least 90 days.Taiwan's Foxconn, the world's largest contract electronics maker, is expected to report on Wednesday that first-quarter profit leapt 72% on continued strong demand for artificial intelligence servers. Net profit for January-March for Apple's top iPhone assembler and Nvidia's server maker likely came in at T$37.8 billion ($1.25 billion), according to an LSEG consensus estimate of 13 analysts, versus T$22.01 billion a year earlier. Foxconn, formally called Hon Hai Precision Industry, said last month that its first-quarter revenue jumped 24.2% to a record for that quarter on strong sales of AI servers. But global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash steep tariffs for at least 90 days. Most of the iPhones it makes for Apple are assembled in China. Foxconn is also building a large manufacturing facility in Mexico - another target of U.S. President Donald Trump's tariffs - to produce AI servers for Nvidia. In its April sales report, Foxconn said while the second quarter should see on-year growth - the company does not provide numerical guidance - the impact of "evolving global political and economic conditions" would need continued close monitoring. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator. Japanese automaker Mitsubishi Motors and Foxconn subsidiary Foxtron Vehicle Technologies last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model. Foxconn has previously said it would consider taking a stake in Nissan for cooperation. Japan's third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Wednesday, where it will also update its outlook for the year. Foxconn's shares have fallen 14% so far this year, hit by concerns about U.S. trade policy, compared with a 7% drop for the broader Taiwan index.

Foxconn profit surges on AI demand, but more conservative on 2025 outlook

Foxconn reported a 91% surge in Q1 profit, driven by strong AI server demand, beating forecasts. Despite robust AI growth, it issued a more cautious full-year outlook amid US-China trade tensions. The company is expanding in electric vehicles and shifting some production to Mexico to mitigate tariff risks.Taiwan's Foxconn, the world's largest contract electronics maker, posted a 91% leap in first-quarter profit and beat the market forecast on strong demand for artificial intelligence servers, but gave a more conservative full-year outlook. Net profit for January-March for Apple's top iPhone assembler and Nvidia's server maker came in at T$ 42.12 billion ($1.39 billion), versus the T$ 37.8 billion average of 13 analyst estimates compiled by LSEG. Foxconn, formally Hon Hai Precision Industry, last month said January-March revenue jumped 24.2% to a record for that quarter on strong sales of AI servers. In an earnings report, Foxconn said it should see significant on-year growth in the second quarter, with high double-digit growth year-on-year for AI servers and an accelerating volume production ramp-up. But for full-year revenue, it forecast significant on-year growth, downgrading the outlook from a previous prediction of strong growth. It did not elaborate and the company does not provide numerical guidance. A Sino-US trade spat could dim prospects for Foxconn's outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash tariffs for at least 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China. Foxconn is also building a large manufacturing facility in Mexico - another target of US President Donald Trump's tariffs - to produce AI servers for Nvidia. Foxconn has been looking to expand its footprint in electric vehicles, which it sees as a major future growth generator. Subsidiary Foxtron Vehicle Technologies and Japanese automaker Mitsubishi Motors last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model. Foxconn has previously said it would consider taking a stake in Nissan for cooperation. Japan's third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Wednesday, where it will also update its outlook for the year. Its shares have fallen 11.4% so far this year, hit by concerns about US trade policy, compared with a 5.4% decline for the broader Taiwan index. They closed up 3.2% on Wednesday ahead of the earnings call. ($1 = 30.2680 Taiwan dollars)

Apple, Nvidia supplier Foxconn warns on 2025 outlook, shares fall By Investing.com

Investing.com-- Hon Hai Precision Industry Co Ltd (TW:2317), also known as {{0| Foxconn} }, warned of a softer 2025 sales outlook due to recent appreciation in the Taiwan dollar, sending its shares lower on Thursday despite strong quarterly earnings. Foxconn's shares fell 2.2% in Taiwan trade, and were a major weight on the Taiwan Weighted index. The world's biggest contract electronics company, which supplies to key players such as Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), flagged a more cautious outlook for 2025. Chairman Young Liu said in an earnings call that while revenue was still set to grow for the year, it would do so at a slower pace than initially expected. Liu cited a recent appreciation in the Taiwan dollar against the greenback as a reason for the softer outlook. The Taiwan dollar had recently surged against the dollar as confusion over U.S. trade tariffs and economic growth sparked a sharp pullback in long dollar positions. Liu also flagged heightened caution over U.S. trade policy. His comments largely offset a bumper earnings report from Foxconn, as the electronics giant benefited from outsized demand for artificial intelligence servers. Foxconn said it still expected to benefit from strong AI-fueled demand. The company is currently building a large factory in Mexico to manufacture AI servers for Nvidia, which are currently built and exported from China. The company is also the largest manufacturer of Apple's iPhones, which are mostly built in China. As such, it faces great headwinds from any prolonged trade conflict between Washington and Beijing. While the U.S. and China did announce a deescalation in their tariff exchange this week, their trade duties still remain relatively high. Markets were also seen holding out for a more permanent truce.

Nvidia supplier Foxconn cuts outlook due to tariff uncertainty

TAIPEI (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker, downgraded its full-year outlook on Wednesday citing uncertainty about U.S. tariffs, even as it struck an upbeat note about booming demand for AI servers. Foxconn, Apple's top iPhone assembler and Nvidia's AI server maker, has ridden the crest of the wave for artificial intelligence demand, but is also vulnerable to changes in U.S. trade and tariff policy given its large manufacturing footprint in countries like China and Mexico. Chairman Young Liu said on an earnings call that U.S. tariffs will bring more challenges and his outlook for the full year was more cautious than previously, after the company predicted significant growth for 2025 compared with a previous outlook of strong growth. "Over the past month, rapid changes in U.S. tariff policies have considerable impacted the global supply chain. With recent exchange rate fluctuations adding to the uncertainty, we are taking a more cautious outlook for the near future," Liu said. While Washington and Beijing on Monday agreed to slash tariffs for at least 90 days, the cheer over the temporary truce was tempered by caution given a more permanent trade deal needs to be struck, while higher tariffs overall could still weigh on the global economy. Most of the iPhones Foxconn makes for Apple are assembled in China. Foxconn is also building a large manufacturing facility in Mexico - another target of U.S. President Donald Trump's tariffs - to produce AI servers for Nvidia. Nvidia said in April it would produce AI servers worth $500 billion in the U.S. over four years, working with companies like TSMC and Foxconn in Houston. In its earnings report, Foxconn said it should see significant on-year growth in the second quarter, with high double-digit growth year-on-year for AI servers and an accelerating volume production ramp-up. The manufacturer does not provide numerical guidance. Net profit for January-March jumped an on-year 91% to T$42.12 billion ($1.39 billion), far exceeding the T$37.8 billion average of 13 analyst estimates compiled by LSEG. Foxconn, formally Hon Hai Precision Industry, last month said January-March revenue jumped 24.2% to a record for that quarter on strong sales of AI servers. Foxconn has been looking to expand its footprint in electric vehicles, which it sees as a major future growth generator. Subsidiary Foxtron Vehicle Technologies and Japanese automaker Mitsubishi Motors last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model. Foxconn has previously said it would consider taking a stake in Nissan for cooperation. Japan's third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the U.S. Liu said there was "of course some progress" in talks with Japanese carmakers, which he did not name, but that he had nothing to announce. Foxconn's shares have fallen 11.4% so far this year, hit by concerns about U.S. trade policy, compared with a 5.4% decline for the broader Taiwan index. They closed up 3.2% on Wednesday ahead of the earnings call. (Reporting by Wen-Yee Lee and Yimou Lee; Writing by Ben Blanchard; Editing by Christopher Cushing and Jan Harvey)

Nvidia supplier Foxconn's profit surges; outlook clouded by tariffs

TAIPEI (Reuters) -Taiwan's Foxconn, the world's largest contract electronics maker, said on Wednesday quarterly profit leapt 91%, beating forecasts, thanks to strong demand for AI servers, although the outlook was overshadowed by tariff uncertainty. Net profit for January-March for Apple's top iPhone assembler and Nvidia's Foxconn, formally Hon Hai Precision Industry, last month said January-March revenue jumped 24.2% to a record for that quarter on strong sales of AI servers. Chairman Young Liu said on an earnings call that U.S. tariffs will bring more challenges and his outlook for the full year was more cautious than previously. A Sino-U.S. trade spat could dim prospects for Foxconn's outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash tariffs for at least 90 days. The cheer over the temporary truce was tempered by caution, given a more permanent trade deal needs to be struck, while higher tariffs overall could still weigh on the global economy. Most of the iPhones Foxconn makes for Apple are assembled in China. Foxconn is also building a large manufacturing facility in Mexico - another target of U.S. President Donald Trump's tariffs - to produce AI servers for Nvidia. In an earnings report, Foxconn said it should see significant on-year growth in the second quarter, with high double-digit growth year-on-year for AI servers and an accelerating volume production ramp-up. The manufacturer does not provide numerical guidance. Foxconn has been looking to expand its footprint in electric vehicles, which it sees as a major future growth generator. Subsidiary Foxtron Vehicle Technologies and Japanese automaker Mitsubishi Motors last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model. Foxconn has previously said it would consider taking a stake in Nissan for cooperation. Japan's third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Wednesday, where it will also update its outlook for the year. Its shares have fallen 11.4% so far this year, hit by concerns about U.S. trade policy, compared with a 5.4% decline for the broader Taiwan index. They closed up 3.2% on Wednesday ahead of the earnings call. ($1 = 30.2680 Taiwan dollars) (Reporting by Ben Blanchard; Editing by Christopher Cushing)

Foxconn profit surges on AI demand, but more conservative on 2025 outlook

TAIPEI (Reuters) -Taiwan's Foxconn, the world's largest contract electronics maker, posted a 91% leap in first-quarter profit and beat the market forecast on strong demand for artificial intelligence servers, but gave a more conservative full-year outlook. Net profit for January-March for Apple's top iPhone assembler and Nvidia's Foxconn, formally Hon Hai Precision Industry, last month said January-March revenue jumped 24.2% to a record for that quarter on strong sales of AI servers. In an earnings report, Foxconn said it should see significant on-year growth in the second quarter, with high double-digit growth year-on-year for AI servers and an accelerating volume production ramp-up. But for full-year revenue, it forecast significant on-year growth, downgrading the outlook from a previous prediction of strong growth. It did not elaborate and the company does not provide numerical guidance. A Sino-U.S. trade spat could dim prospects for Foxconn's outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash tariffs for at least 90 days. Most of the iPhones Foxconn makes for Apple are assembled in China. Foxconn is also building a large manufacturing facility in Mexico - another target of U.S. President Donald Trump's tariffs - to produce AI servers for Nvidia. Foxconn has been looking to expand its footprint in electric vehicles, which it sees as a major future growth generator. Subsidiary Foxtron Vehicle Technologies and Japanese automaker Mitsubishi Motors last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model. Foxconn has previously said it would consider taking a stake in Nissan for cooperation. Japan's third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Wednesday, where it will also update its outlook for the year. Its shares have fallen 11.4% so far this year, hit by concerns about U.S. trade policy, compared with a 5.4% decline for the broader Taiwan index. They closed up 3.2% on Wednesday ahead of the earnings call. ($1 = 30.2680 Taiwan dollars) (Reporting by Ben Blanchard; Editing by Christopher Cushing)

Foxconn Posts Strong Profit But Lowers Guidance Amid Tariff Risks -- Update

Foxconn Technology Group reported strong first-quarter results but cut annual guidance as the world's largest contract electronics manufacturer warned about tariff and currency headwinds. The Taiwanese company, formally known as Hon Hai Precision Industry, now sees 2025 revenue as being stronger than last year, a downgrade from the "significantly stronger" result it had expected previously. "We will take a more cautious view on the future outlook," Chairman Young Liu said during an earnings call on Wednesday. Fast-changing U.S. tariff policies over the past month, their disruptive effects on global supply chains, and foreign-exchange headwinds have created more uncertainty for Foxconn's outlook, Liu said. President Trump imposed a steep 32% levy on Taiwanese goods on April 2. Although he later announced a 90-day pause on that tariff, Taiwan is still subject to a 10% duty, and uncertainty remains over the application of China and sector-specific tariffs. Foxconn's first-quarter profit jumped 91% to 42.11 billion New Taiwan dollars, equivalent to US$1.38 billion, beating analyst expectations. Revenue rose 24% to NT$1.644 trillion. Exporters like Foxconn are also dealing with a sharply stronger Taiwan dollar that has fanned concerns about goods becoming less competitive overseas. Taiwanese exporters are not fully hedged against foreign-exchange risks and are likely to incur translation losses, DBS economist Ma Tieying said in a recent note. Foxconn Chief Financial Officer David Huang said during the earnings call that every NT$1 appreciation in the annual average exchange rate of the Taiwan dollar against its U.S. counterpart affects the company's revenue by about 3% and its gross margin by 0.1 percentage point. There was a big silver lining in the company's artificial-intelligence business, which analysts are watching as a major earnings catalyst. Despite tariff headwinds, Foxconn still expects AI servers to be a growth driver this year, confirming its guidance for revenue from the segment to top NT$1 trillion in 2025. Foxconn, best known for assembling Apple's iPhones, now plays an increasingly important role in building AI servers for U.S. tech giants such as Amazon and Nvidia. Cloud and networking products--including AI servers--accounted for 34% of first-quarter revenue, making them Foxconn's second-largest business segment after smart consumer electronics at 40%. To strengthen its supply-chain resiliency, Foxconn has stepped up the establishment of regional production sites over the past few years. With offices and production sites now in 24 countries, Foxconn's chairman said the company is better able to meet client orders. The tariff impact on its supply chain is relatively small, Liu added. In response to market concerns about overinvestment in AI, first sparked by the emergence of lower-cost AI models that could reduce the need to spend on the technology, Liu said demand among Foxconn's North American clients remains strong.

Foxconn expected to post strong Q1 profit growth on AI server demand

TAIPEI (Reuters) -Taiwan's Foxconn, the world's largest contract electronics maker, is expected to report on Wednesday that first-quarter profit leapt 72% on continued strong demand for artificial intelligence servers. Net profit for January-March for Apple's top iPhone assembler and Nvidia's Foxconn, formally called Hon Hai Precision Industry, said last month that its first-quarter revenue jumped 24.2% to a record for that quarter on strong sales of AI servers. But global trade uncertainty could dim the prospects for its outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash steep tariffs for at least 90 days. Most of the iPhones it makes for Apple are assembled in China. Foxconn is also building a large manufacturing facility in Mexico - another target of U.S. President Donald Trump's tariffs - to produce AI servers for Nvidia. In its April sales report, Foxconn said while the second quarter should see on-year growth - the company does not provide numerical guidance - the impact of "evolving global political and economic conditions" would need continued close monitoring. Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator. Japanese automaker Mitsubishi Motors and Foxconn subsidiary Foxtron Vehicle Technologies last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model. Foxconn has previously said it would consider taking a stake in Nissan for cooperation. Japan's third-biggest automaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States. Foxconn holds its earnings call at 3 p.m. (0700 GMT) in Taipei on Wednesday, where it will also update its outlook for the year. Foxconn's shares have fallen 14% so far this year, hit by concerns about U.S. trade policy, compared with a 7% drop for the broader Taiwan index. (Reporting by Ben Blanchard; Editing by Christopher Cushing)