Foxconn Sees Big Profit Jump on AI Demand, But Cautious About 2025

Foxconn, the world’s biggest contract electronics maker, reported a 91% rise in its first-quarter profit, thanks to strong demand for artificial intelligence (AI) servers. The company, which assembles iPhones for Apple and servers for Nvidia, posted a net profit of T$42.12 billion (about $1.39 billion), beating market expectations.

Foxconn, officially known as Hon Hai Precision Industry, had already announced a 24.2% rise in revenue for the January-March period due to increased sales of AI servers. As the AI server sales are expected to witness double-digit year-on-year growth, the company is looking forward for continued growth in the second quarter.

However, Foxconn gave a more cautious full-year outlook, lowering its forecast from “strong growth” to “significant growth” without sharing exact figures. This conservative stance could be influenced by the ongoing U.S.-China trade tensions, as most of Foxconn’s iPhones are assembled in China.

Foxconn is also investing in a large AI server production facility in Mexico to reduce its reliance on China. Beyond electronics, the company is exploring electric vehicles as a future growth area. Its EV unit, Foxtron, recently signed an agreement with Mitsubishi Motors and is also considering collaboration with Nissan.

Foxconn’s shares rose 3.2% ahead of its earnings call in Taipei.

Source: The Economic Times