Foxconn Quarterly Sales Jump on Strong AI Server Demand

Hon Hai Precision Industry Co., better known as Foxconn, reported stronger-than-expected quarterly sales, signaling continued robust demand for artificial intelligence (AI) infrastructure, Debbie Wu reported for Bloomberg News.

Foxconn's strong quarterly sales underscore sustained global demand for AI servers powered by Nvidia chips. (Photo: Foxconn Wisconsin Official X)

Revenue increased 52 percent in June, the company said on Sunday. Based on Bloomberg calculations, that lifted second-quarter revenue to approximately NT$2.51 trillion (US$79 billion), well above analysts' average estimate of NT$2.37 trillion.

Foxconn has become a major player in the AI supply chain by assembling servers equipped with Nvidia AI accelerators.

Major technology companies, including Alphabet, Amazon, Meta Platforms, and Microsoft, are collectively expected to spend about US$725 billion on AI this year despite growing concerns about overcapacity and the industry's path to profitability.

Concerns have also emerged over the rapid construction of energy-intensive data centers, particularly as conflict in the Middle East has disrupted global shipping routes and increased natural gas prices.

Foxconn projected strong sales growth for 2026 in March, citing sustained AI demand.

The company also derives a significant share of its revenue from assembling Apple iPhones and MacBooks and could benefit from strong demand for the upcoming iPhone 17 lineup.

Like many electronics manufacturers, however, Foxconn continues to face shortages of memory chips used in smartphones, personal computers and AI servers.