Foxconn, a major Apple supplier and Nvidia's server manufacturer, has reported a notable 17% increase in quarterly profits, driven by strong demand for AI servers. This surge reflects significant investments by tech companies in data centres and AI infrastructure. The company's second-quarter operating profit reached NT$56.596 billion ($1.89 billion), surpassing analyst expectations. Foxconn anticipates continued growth, projecting a 170% year-over-year revenue increase in AI servers for the current quarter.
Foxconn's strategic shift towards AI infrastructure is proving successful, with AI servers now constituting over 40% of its server business. This transition has solidified Foxconn's position as a key partner to Nvidia and a critical player in the AI supply chain. The company's revenue for the fourth quarter surged by 15.2% to T$2.13 trillion ($64.72 billion), exceeding expectations.
Despite a typically slower first quarter, Foxconn projects significant year-on-year growth for early 2025, aligning with historical trends. However, geopolitical factors and tariff uncertainties could pose challenges to maintaining this growth across global supply chains.
