Foxconn expects Q3 to beat market expectations as AI demand stays strong

Foxconn Technology (TW:2354) expects its third-quarter performance to exceed market expectations as robust demand for artificial intelligence-related products and a seasonal pickup in information and communication technology products boost operations, the Taiwanese electronics manufacturer said Saturday.

The company said its visibility for the third quarter had improved from the previous month, with overall performance expected to outperform market expectations. Foxconn, formally known as Hon Hai Precision Industry, does not provide numerical forecasts.

The upbeat outlook adds to evidence that strong spending on AI infrastructure continues to support Asian technology manufacturers, with Foxconn one of the world's largest producers of AI servers and a key supplier to Nvidia.

Foxconn's second-quarter net profit rose 35% year over year last month, beating analyst expectations, as demand for AI-related infrastructure continued to underpin its business.

The company also reported August revenue of T$921.8 billion ($29.15 billion), up 51.98% from a year earlier. That marked its strongest August revenue on record and the second consecutive month in which monthly revenue topped T$900 billion.

Despite the stronger outlook, Foxconn cautioned that investors should continue to monitor the impact of an uncertain global political and economic environment, without providing further details.

The warning highlights a key risk for a company with an extensive global manufacturing footprint and exposure to shifting trade policies and geopolitical tensions.

Foxconn shares closed 3.4% higher on Friday, outperforming the broader Taiwan market, which gained 1.5%, before the latest monthly revenue figures were released.

The company's stronger outlook could provide a further boost to Taiwan's technology sector, while offering investors another indication that demand for AI computing infrastructure remains resilient.

Foxconn's upbeat outlook adds to the growing evidence that AI infrastructure spending remains a key driver of growth across Asia's technology supply chain.