Foxconn Third Quarter Set to Outperform as AI Demand Drives Record $29.15B August Revenue

Foxconn says third quarter to outperform market expectations on AI strength

TAIPEI, Sept 5 (Reuters) - Foxconn's third-quarter performance is expected to outperform market expectations given strong AI-related demand, the Taiwanese contract electronics maker (2317.TW), opens new tab said on Saturday, though it offered caution about "volatile" global politics. Foxconn, Nvidia's (NVDA.O), opens new tab biggest server maker and a major Apple (AAPL.O), opens new tab supplier, has been a big beneficiary of the trend towards AI, reporting last month a 35% rise in second-quarter profit that beat analyst forecasts. "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," it said in a statement, referring to information and communication technology. "Currently, the company's visibility for the third quarter has improved compared to the previous month, with overall performance expected ⁠to outperform market expectations," it added, without giving details. However, Foxconn said it remained necessary to "monitor the impact of the volatile global political and economic situation". It likewise did not elaborate. Foxconn, formally called ⁠Hon Hai Precision Industry, does not provide numerical forecasts. It said revenue last month rose 51.98% from a year earlier to T$921.8 billion ($29.15 ⁠billion), the highest amount ever for August and the second month in a row it has exceeded T$900 billion. Foxconn's ⁠shares closed up 3.4% on Friday, before the revenue data was released, outperforming the broader market's (.TWII), opens new tab 1.5% gain. ($1 = 31.6210 Taiwan dollars) Reporting by Ben Blanchard; Editing by William Mallard Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nvidia partner Hon Hai's sales climb 52% as Europe lines up its own orders

Hon Hai's August sales rose 52% while investors argue about AI returns, and its European partner is a company the French state bought in April Hon Hai reported August revenue of NT$921.8B, about $29.1B, up 52% year on year on AI server demand, well ahead of analyst expectations for the quarter. In June it signed a EUR 120M manufacturing partnership with Bull, the French state-owned computing firm, splitting work between Pardubice and Angers.x Hon Hai reported an August revenue rise of 52% to NT$921.8B, about $29.1B, Bloomberg News reported on Saturday. July grew 54%, and analysts are looking for around 37% growth in the three months to September, so the company is running well ahead of them. The Taiwanese company assembles Nvidia's servers, and its monthly filing has become a check-in for the AI trade. Concerns about overcapacity, rising debt and fierce competition have grown around it, and the revenue line keeps ignoring them. TNW reported after the second quarter that AI servers now bring in more than everything else Hon Hai makes combined. The rest is largely Apple. Foxconn, as it is also known, remains the primary iPhone assembler on thinner margins, with plants in China and India, and Apple is spreading work towards Luxshare Precision. Bloomberg Intelligence analysts Steven Tseng and Rebecca Wang note that the consumer electronics business dilutes the cloud momentum, leaving gross margin and forward price to earnings below the peer average. So the order book keeps compounding while the market argues about what the spending eventually returns. Demand and confidence have come apart. TNW has followed that argument through Big Tech's cash flow, and Chinese investors marked the trade down this week despite the strongest earnings season in five years. Europe is about to add to the same order book, and it has already picked its assembler. Bull and Foxconn announced a manufacturing partnership on 1 June with an initial commitment above EUR 120M, according to Bull's own statement. Components and initial testing go to Foxconn's plant in Pardubice, in the Czech Republic. Final assembly, integration and system validation happen at Bull's factory in Angers. Foxconn's head of AI and quantum, Jesse Chao, said the collaboration advances "building sovereign AI infrastructure in Europe" and supports a resilient supply chain. The French state finished buying Bull from Atos for EUR 404M in April, two months before the Foxconn announcement, and presented the purchase as a sovereignty measure. The Commission has committed EUR 20B to AI gigafactories, with 77 proposals across 16 member states and construction of the first planned for 2027. The racks will be assembled in France from parts made in Czechia by a Taiwanese company whose monthly revenue is $29B.

Foxconn: AI boom lifts Foxconn August sales to USD 29.14 billion

Foxconn's August sales surged significantly, reaching the second-highest monthly total in its history. This growth was fueled by strong demand for artificial intelligence applications and consumer electronics. Meanwhile, Apple supplier Largan Precision experienced a year-on-year sales decrease in August. Largan anticipates improved sales in September due to peak season demand. Both companies are preparing for new product launches and inventory rebuilding. Taiwan-based manufacturing giant Hon Hai Precision Industry Co, globally known as Foxconn, reported a 51.98 per cent year-on-year rise in consolidated sales to NT$921.77 billion (USD 29.14 billion) in August, amid strong global demand for artificial intelligence applications, according to a news report by Focus Taiwan. According to the report, the August sales were the second-highest monthly sales in Hon Hai's history, trailing only the NT$946.51 billion (USD 29.85 billion) recorded in July. Foxconn, a major iPhone assembler and AI server maker, said its cloud and networking division recorded significant year-on-year revenue growth in August as AI momentum accelerated. Its smart consumer electronics division also reported significant sales growth, supported by clients rebuilding inventories ahead of the launch of new products and higher shipment prices, the report said. The company's electronics component and computing product divisions also posted strong year-on-year growth during the month, the report said. On a month-on-month basis, the cloud and networking and electronics component divisions recorded significant sales growth in August. However, the smart consumer electronics and computing product divisions reported a decline in sales compared with July. For the first eight months of the year, Foxconn's consolidated sales stood at NT$6.51 trillion (USD 205.32 billion), up 39.73 per cent from the same period a year earlier. Looking ahead, Foxconn said the third quarter is traditionally a peak season for the information and communications technology industry and expects its sales growth momentum to continue. Separately, Apple supplier Largan Precision Co reported August consolidated sales of NT$5.01 billion (USD 158.01 million), down 16 per cent year-on-year but up three per cent month-on-month, Focus Taiwan reported. Largan said lenses with 20 megapixels and above, which carry higher profit margins, accounted for 10-20 per cent of its August sales. Lenses in the 10-20 megapixel range made up 60-70 per cent, while 8-megapixel lenses accounted for less than 10 per cent and other products for 20-30 per cent. The report further said that during January-August, Largan's consolidated sales rose four per cent year-on-year. The company further expects sales to increase in September as traditional peak-season demand and client inventory building ahead of new product launches support shipments.

Foxconn Forecasts Strong Q3 Results on AI Demand - NVIDIA (NASDAQ:NVDA)

Foxconn Says Q3 Will Beat Expectations As AI Demand Surges, August Revenue Hits Record Foxconn, the world's largest contract electronics manufacturer, expects its third-quarter performance to outperform market expectations, citing surging artificial intelligence demand and seasonal strength in information and communication technology products as the industry enters its second-half peak season. August Revenue Hits Record High The Taiwanese firm, which is Nvidia Corp.'s (NASDAQ:NVDA) server assembly partner and Apple Inc.'s (NASDAQ:AAPL) top phone assembler, said in its unaudited consolidated monthly report that August revenue rose 51.98% year-over-year to T$921.8 billion ($29.15 billion). That marked the highest August total on record and the second straight month above T$900 billion ($28.46 billion). Foxconn said, "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." It added, "Currently, the company's visibility for the third quarter has improved compared to the previous month, with overall performance expected to outperform market expectations." Trending Still, the company said it remained necessary to "monitor the impact of the volatile global political and economic situation." Strong Q2 Results In the previous quarter, Foxconn's revenue jumped 41% year-over-year to T$2.53 trillion ($79.2 billion), beating analyst estimates of T$2.37 trillion ($74.8 billion) and cementing its central role in the global AI hardware supply chain. Last month, it also posted a 35% jump in second-quarter profit, beating analyst estimates. Foxconn, formally known as Hon Hai Precision Industry Co., is also a strategic partner of OpenAI. The two companies are co-designing next-generation AI data center hardware, including server racks, cabling and power systems, with manufacturing planned at Foxconn's U.S. facilities in Wisconsin, Ohio and Texas. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Asia OpenAI Shifts AI Hardware Manufacturing To Foxconn As Jony Ive-Designed Device Targets 2026 Launch: Report OpenAI is reportedly shifting its first AI hardware project to Foxconn ahead of launching a Jony Ive-designed consumer device. 2 min read Read this article Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Foxconn expects Q3 to beat market expectations as AI demand stays strong By Investing.com

Investing.com --Foxconn Technology (TW:2354) expects its third-quarter performance to exceed market expectations as robust demand for artificial intelligence-related products and a seasonal pickup in information and communication technology products boost operations, the Taiwanese electronics manufacturer said Saturday. The company said its visibility for the third quarter had improved from the previous month, with overall performance expected to outperform market expectations. Foxconn, formally known as Hon Hai Precision Industry, does not provide numerical forecasts. The upbeat outlook adds to evidence that strong spending on AI infrastructure continues to support Asian technology manufacturers, with Foxconn one of the world's largest producers of AI servers and a key supplier to Nvidia. Foxconn's second-quarter net profit rose 35% year over year last month, beating analyst expectations, as demand for AI-related infrastructure continued to underpin its business. The company also reported August revenue of T$921.8 billion ($29.15 billion), up 51.98% from a year earlier. That marked its strongest August revenue on record and the second consecutive month in which monthly revenue topped T$900 billion. Despite the stronger outlook, Foxconn cautioned that investors should continue to monitor the impact of an uncertain global political and economic environment, without providing further details. The warning highlights a key risk for a company with an extensive global manufacturing footprint and exposure to shifting trade policies and geopolitical tensions. Foxconn shares closed 3.4% higher on Friday, outperforming the broader Taiwan market, which gained 1.5%, before the latest monthly revenue figures were released. The company's stronger outlook could provide a further boost to Taiwan's technology sector, while offering investors another indication that demand for AI computing infrastructure remains resilient. Foxconn's upbeat outlook adds to the growing evidence that AI infrastructure spending remains a key driver of growth across Asia's technology supply chain.

Nvidia partner Hon Hai's August sales jump 52% on AI server demand - Bloomberg By Investing.com

Investing.com -- Hon Hai Precision Industry (TW:2317), Nvidia's (NASDAQ:NVDA) server assembly partner, reported a 52% jump in August sales as global investment in artificial intelligence infrastructure continued to drive demand for servers, Bloomberg reported on Saturday. Revenue reached NT$921.8 billion ($29.1 billion) in August, maintaining the rapid growth recorded in July, when sales increased 54% from a year earlier. The performance puts Hon Hai, also known as Foxconn, on course to exceed current expectations for the September quarter. Analysts expect revenue to rise about 37% during the three months. AI servers have become an increasingly important growth engine for the Taiwanese electronics manufacturer as technology companies pour capital into data centers and computing infrastructure. Hon Hai's position as a key Nvidia server assembly partner has allowed it to benefit from the AI investment boom. Its monthly revenue figures are also closely watched for indications of demand across the sector as investors assess concerns over data-center overcapacity, rising debt and intensifying competition. The company's large consumer electronics operation remains a counterweight to the faster-growing server business. Hon Hai is Apple's (NASDAQ:AAPL) primary iPhone manufacturer, with major assembly operations in China and India. Smartphone assembly typically carries lower margins than AI server manufacturing, limiting the impact of rapid cloud-related growth on Hon Hai's overall profitability. Apple has also been diversifying its manufacturing network by expanding relationships with other suppliers, including Luxshare Precision Industry. Hon Hai shares have benefited from growing investor exposure to the AI infrastructure buildout this year. Continued strength in August sales suggests demand for AI servers remains robust despite mounting questions over the scale and sustainability of spending across the industry.