Foxconn reported a 39.8% increase in second-quarter revenue, exceeding market expectations as demand for AI servers and related infrastructure continued to grow.
The company, which manufactures AI server systems for major technology providers, said its cloud and networking division recorded strong growth. It expects demand for complete AI server racks to continue increasing during the third quarter.
Key facts
- Second-quarter revenue reached NT$2.51 trillion, approximately US$78.7 billion.
- Revenue was higher than market forecasts.
- June revenue increased 52.1% from the previous year and set a record for the month.
- AI products helped drive growth in Foxconn’s cloud and networking division.
- The company expects AI rack demand to remain strong during the third quarter.
Our take
The growth of generative AI is creating demand well beyond the companies developing the models. Manufacturers of servers, networking equipment, cooling systems and other data-centre technology are becoming an increasingly important part of the AI economy. Foxconn’s results provide further evidence that organisations are continuing to invest heavily in the infrastructure needed to train and operate AI systems. The challenge will be ensuring that this expansion can be supported by sufficient energy, components and data-centre capacity.
KiwiGen.AI 