Foxconn's Q2 Profit Rises 35% on AI Server Demand, Beats Forecasts

Taiwan's Foxconn, the world's largest contract electronics maker, reported second-quarter net profit of NT$59.97 billion ($1.86 billion), up 35 percent from a year earlier and ahead of forecasts, on surging demand for AI servers, the company said Wednesday. The result beat analyst expectations and Foxconn reaffirmed its "strong" revenue growth forecast for the year, The Edge Malaysia reported.

Riding the AI Server Wave

The company's AI server business has become its fastest-growing segment, with Nvidia GPU-based systems now a core revenue driver. Foxconn is expanding capacity to meet demand: it is building factories in Mexico and Texas dedicated to producing AI servers for Nvidia, part of a push to localize manufacturing closer to US customers and hedge against geopolitical supply-chain risk. The company's cloud and networking division, which houses the AI server business, continues to post the strongest growth across its segments, executives said on the earnings call.

The results add to a strong week for the AI hardware supply chain: CoreWeave reported revenue of $2.575 billion, up 112 percent, with a $104 billion backlog, while Samsung and SK Hynix rallied Wednesday on reports that Singapore's Temasek plans to invest directly in both chipmakers.

What's Next

Foxconn, which assembles roughly two-thirds of the world's iPhones, faces an uneven consumer electronics market even as AI demand surges — a split the company says it is navigating by shifting mix toward AI infrastructure and high-end devices. The company's stock has climbed alongside the broader AI trade this year, and analysts expect AI servers to account for an ever-larger share of revenue as Nvidia's Rubin platform ramps into 2027.