Particle.news
Download on the App Store
7 ARTICLES
·
yesterday

Foxconn’s AI Server Pivot Boosts Q2 Profit by 27%

New Nvidia server plants in Mexico (with additional facilities in Texas) underscore Foxconn’s shift toward AI-driven growth despite persistent trade and currency uncertainties.

Image
The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in New Taipei City, Taiwan March 29, 2016. REUTERS/Tyrone Siu
Image

Overview

  • Foxconn posted net profit of NT$44.36 billion in the second quarter, up 27% year over year and surpassing analyst forecasts.
  • AI server products accounted for about 41% of revenues, overtaking consumer electronics to become the largest segment.
  • The company is constructing Nvidia server facilities in Mexico and Texas to meet surging AI demand.
  • Foxconn acquired a stake in TECO Electric & Machinery to collaborate on AI-focused data center development.
  • Management warned that escalating trade tensions, tariffs and exchange-rate volatility could cloud its growth outlook.