TAIPEI — Taiwan's Foxconn, the world's largest contract electronics maker and Nvidia's biggest server manufacturer, reported a staggering 39.8% year-on-year jump in second-quarter revenue, smashing market forecasts on the back of insatiable demand for AI infrastructure.
Revenue for the April–June period reached T$2.513 trillion ($78.71 billion), above the T$2.372 trillion LSEG SmartEstimate. June alone posted a 52.1% year-on-year surge to T$821.8 billion — a record for that month.
The results underscore how the AI buildout continues to supercharge the hardware supply chain, with Foxconn's cloud and networking products division — which builds the server racks powering AI data centers — leading the charge. Smart consumer electronics, including iPhones assembled for Apple, also posted "significant" growth.
AI Servers Outpacing Smartphones
The shift is structural: AI server revenue is rapidly becoming the dominant driver of Foxconn's top line, challenging the traditional primacy of consumer devices. The company's shares have gained 4.3% this year, though they continue to trail the broader Taiwan market's 61.5% rally.
Geopolitical Clouds
Foxconn struck a cautious note on the outlook, warning that "it remains necessary to monitor the impact of the volatile global political and economic situation." The remark comes amid escalating US–China tech tensions, export controls on advanced chips, and tariff uncertainties that directly affect a manufacturer with deep exposure to both markets.
Q3 Outlook
Looking ahead, Foxconn said operations are expected to grow both quarter-on-quarter and year-on-year in the third quarter, with AI rack production maintaining its growth trajectory. The company will report full second-quarter earnings on August 14.
