Foxconn reveals 6 percent rise in Q2 earnings, driven by rising demand for AI-related products
Date
8/15/2024 4:19:07 AM
(MENAFN) Taiwanese electronics giant Foxconn, officially known as Hon Hai Precision Industry, reported a 6 percent increase in its second-quarter net profit, fueled by robust demand for products related to artificial intelligence. As the world’s largest electronics supplier and key assembler for major companies like Apple, Foxconn saw its net profit for the April to June period reach NTUSD35.05 billion (approximately USD1.8 billion), up from NTUSD33 billion during the same period last year. This growth underscores the company's strong market position and its ability to capitalize on the rising need for advanced technological products.
Foxconn's revenue also saw a significant boost, rising 19 percent year-on-year to NTUSD1.55 trillion (around USD47.84 billion) in the second quarter. Documents released ahead of an earnings conference call revealed that revenue from artificial intelligence servers surged by 60 percent compared to the previous quarter, highlighting the company’s strategic focus on AI-related technologies. During the call, Foxconn spokesman James Wu emphasized that the performance of AI servers exceeded expectations, contributing to the higher-than-anticipated revenue growth. This strong performance in AI servers has become a key driver of Foxconn’s overall revenue, reflecting the growing importance of AI in the global electronics market.
These impressive financial results mark the fourth consecutive quarter of profit growth for Foxconn, a testament to the company’s successful adaptation to the increasing demand for AI tools. The surge in demand for AI-driven systems has been propelled by the popularity of generative AI programs like ChatGPT, which have captured the attention of businesses and consumers alike. As Foxconn continues to benefit from these trends, its ongoing investments in AI technology and infrastructure position the company well for sustained growth in an increasingly AI-centric world.
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