Investing.com-- Hon Hai Precision Industry Co Ltd (TW:2317), also known as {{0| Foxconn} }, warned of a softer 2025 sales outlook due to recent appreciation in the Taiwan dollar, sending its shares lower on Thursday despite strong quarterly earnings.
Foxconn’s shares fell 2.2% in Taiwan trade, and were a major weight on the Taiwan Weighted index.
The world’s biggest contract electronics company, which supplies to key players such as Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), flagged a more cautious outlook for 2025. Chairman Young Liu said in an earnings call that while revenue was still set to grow for the year, it would do so at a slower pace than initially expected.
Liu cited a recent appreciation in the Taiwan dollar against the greenback as a reason for the softer outlook. The Taiwan dollar had recently surged against the dollar as confusion over U.S. trade tariffs and economic growth sparked a sharp pullback in long dollar positions.
Liu also flagged heightened caution over U.S. trade policy. His comments largely offset a bumper earnings report from Foxconn, as the electronics giant benefited from outsized demand for artificial intelligence servers.
Foxconn said it still expected to benefit from strong AI-fueled demand. The company is currently building a large factory in Mexico to manufacture AI servers for Nvidia, which are currently built and exported from China.
The company is also the largest manufacturer of Apple’s iPhones, which are mostly built in China. As such, it faces great headwinds from any prolonged trade conflict between Washington and Beijing.
While the U.S. and China did announce a deescalation in their tariff exchange this week, their trade duties still remain relatively high. Markets were also seen holding out for a more permanent truce.