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Reuters

Taiwan’s Foxconn, the world’s largest contract electronics maker, posted a 91 per cent leap in first-quarter profit and beat the market forecast on strong demand for artificial intelligence (AI) servers, but gave a more conservative full-year outlook.
Net profit for January-March for Apple’s top iPhone assembler and Nvidia’s server maker came in at T$42.12 billion (US$1.39 billion), versus the T$37.8 billion average of 13 analyst estimates compiled by LSEG.
Foxconn, formally Hon Hai Precision Industry, last month said January-March revenue jumped 24.2 per cent to a record for that quarter on strong sales of AI servers.
In an earnings report, Foxconn said it should see significant on-year growth in the second quarter, with high double-digit growth year on year for AI servers and an accelerating volume production ramp-up.
But for full-year revenue, it forecast significant on-year growth, downgrading the outlook from a previous prediction of strong growth. It did not elaborate and the company does not provide numerical guidance.
A Sino-US trade spat could dim prospects for Foxconn’s outlook this year, as it has a major manufacturing presence in China, though Washington and Beijing on Monday agreed to slash tariffs for at least 90 days.
Most of the iPhones Foxconn makes for Apple are assembled in China. Foxconn is also building a large manufacturing facility in Mexico – another target of US President Donald Trump’s tariffs – to produce AI servers for Nvidia.
Foxconn has been looking to expand its footprint in electric vehicles, which it sees as a major future growth generator.
Subsidiary Foxtron Vehicle Technologies and Japanese carmaker Mitsubishi Motors last week announced the signing of a memorandum of understanding for the supply of an electric vehicle model.
Foxconn has previously said it would consider taking a stake in Nissan for cooperation. Japan’s third-biggest carmaker is striving to make its business leaner and more resilient after weak sales in China and its biggest market the United States.
Foxconn holds its earnings call at 3pm in Taipei on Wednesday, where it will also update its outlook for the year.
Its shares have fallen 11.4 per cent so far this year, hit by concerns about US trade policy, compared with a 5.4 per cent decline for the broader Taiwan index.
They closed up 3.2 per cent on Wednesday ahead of the earnings call.


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The Taiwanese iPhone assembler and AI server maker reported a 91 per cent leap in first-quarter profit but downgraded its full-year outlook


The Taiwanese iPhone assembler and AI server maker reported a 91 per cent leap in first-quarter profit but downgraded its full-year outlook.


Foxconn profit surges amid AI boom, but trade tensions cloud outlook

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The Taiwanese iPhone assembler and AI server maker reported a 91 per cent leap in first-quarter profit but downgraded its full-year outlook

The Taiwanese iPhone assembler and AI server maker reported a 91 per cent leap in first-quarter profit but downgraded its full-year outlook