Taiwanese company Foxconn, the world’s largest contract electronics manufacturer, announced record revenue in the second quarter amid growing demand for artificial intelligence (AI) products. However, the company warned of potential risks due to geopolitical instability and currency fluctuations.
Foxconn’s revenue for the reporting period increased by 15.82% year-on-year, reaching NT$1.797 trillion, exceeding analysts’ forecast of NT$1.7896 trillion according to LSEG SmartEstimate.
According to the company, its clients include AI chipmaker Nvidia (NVDA.O). High demand for AI-related products contributed to significant revenue growth in its cloud and networking products division.
Meanwhile, the smart consumer electronics segment, including iPhone, showed “unstable” revenue growth due to currency exchange rate effects.
Revenue for June rose 10.09% compared to last year, reaching a record level for that month — NT$540.237 billion.
Foxconn expects further revenue growth in the current quarter compared to the previous and the same period last year but emphasizes the need to closely monitor the global political and economic situation, as well as currency fluctuations.
The world’s largest iPhone factory, managed by Foxconn, is located in Zhengzhou, China.
The company, formerly known as Hon Hai Precision Industry, did not provide specific future forecasts. Full financial results for the second quarter will be released on August 14.
Foxconn’s shares rose 76% last year, significantly outperforming the Taiwanese market (.TWII), which rose 28.5%. However, shares have fallen 12.5% since the beginning of this year, reflecting overall pressure on the tech sector due to the unstable trade policies of the Trump administration.
On the eve of the quarterly results publication on Friday, Foxconn shares closed down 1.83%, while the benchmark index fell 0.73%.