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Investing.com -- Taiwan’s Foxconn (SS:601138), the world’s largest contract electronics maker, achieved record second-quarter revenue driven by strong artificial intelligence product demand.
The company, formally known as Hon Hai Precision Industry Co Ltd (TW:2317), reported second-quarter revenue of T$1.797 trillion, representing a 15.82% increase year-on-year. This performance exceeded analyst expectations of T$1.7896 trillion, according to LSEG.
Foxconn, which serves as Apple’s (NASDAQ:AAPL) biggest iPhone assembler, attributed the strong results to robust demand for AI products, which boosted revenue growth in its cloud and networking products division. The company counts AI chip firm NVIDIA Corporation (NASDAQ:NVDA) among its customers.
In contrast, the smart consumer electronics segment, which includes iPhones, showed "flattish" year-on-year revenue growth, affected by exchange rate fluctuations.
For the month of June alone, Foxconn posted revenue of T$540.237 billion, marking a 10.09% increase compared to the same month last year and setting a record high for June.
Looking ahead, Foxconn projects growth in the current quarter compared to both the previous quarter and the same period last year.
However, the company warned about potential risks to growth, citing geopolitical challenges and exchange rate headwinds.