Taiwanese contract electronics manufacturer Foxconn, the world’s largest, has achieved strong growth in its second-quarter revenues, driven by increased demand for artificial intelligence (AI) products. At the same time, it warned of continued uncertainty due to global political and economic developments.

AI servers drive growth

The company said that from April to June its revenues rose 39.8% year-on-year to NT$2.513 trillion, beating market expectations, supported by strong demand for AI servers and the growth of consumer electronics sales including iPhones.

It added that cloud computing and network products recorded strong growth due to continued demand for AI solutions, while its consumer smart devices sector, which includes iPhone assembly operations, achieved “significant” growth.

In June alone, the company recorded revenues of NT$821.8 billion, up 52.1% from the same month last year and a record high for that month.

Optimism for Q3 despite global risks

Foxconn expects its business to continue growing in the third quarter compared to both the previous quarter and the same period last year, with continued strong demand for AI servers.

Despite strong performance, the company warned that it would need to monitor how global political and economic volatility affects its business in the coming period, without providing additional details or issuing numerical financial forecasts, which is usually the approach taken by the company.

Foxconn is Nvidia’s largest server manufacturer, as well as Apple's largest phone assembler, making it one of the biggest beneficiaries of the current boom in artificial intelligence applications, alongside continued demand for electronic devices.