Apple provider Foxconn’s second-quarter revenue rises 6% on AI growth

Apple provider Foxconn reported on Wednesday a 6% rise in second-quarter internet revenue, pushed by robust AI server demand as the corporate touted “robust progress momentum” from the know-how growth.

The Taiwanese firm, the world’s largest contract electronics maker, stated internet revenue for the April-June quarter rose to 35.05 billion New Taiwan {dollars} ($1.09 billion) from NT$33 billion in the identical interval the earlier yr.

That beat analysts’ common estimate of NT$34.29 billion.

It was the agency’s fourth consecutive quarterly revenue rise.

The corporate stated AI servers accounted for greater than 40% of its server enterprise within the second quarter, saying its subsequent era AI computing resolution has introduced “robust progress momentum.”

Foxconn had beforehand anticipated income for the second quarter to develop considerably from a yr earlier, though income from sensible pc electronics together with smartphones was prone to be flattish.

The corporate, formally known as Hon Hai Precision Business Co Ltd, has anticipated its operations to select up progressively within the second half as many electronics distributors together with Apple often launch new merchandise forward of the year-end vacation season.

In a report previous to the earnings announcement, Taipei-based KGI Securities revised up its gross sales forecast for Foxconn this yr, saying robust demand for brand new iPhones and AI servers had been prone to result in a better-than-expected outlook for the agency within the second half.