Foxconn Reports Significant Sales Increase Driven by Strong AI Demand

Foxconn, a server assembly partner of Nvidia, reported quarterly sales growth that exceeded expectations, indicating sustained strong demand for artificial intelligence (AI). On Sunday, Foxconn announced a 52% increase in revenue for June. This translates to nearly a 40% increase in sales for the June quarter, reaching NT$2.51 trillion (approximately $79 billion). Analysts had previously expected an average of NT$2.37 trillion. Foxconn, also known as Hon Hai, has established itself as a key player in AI hardware by assembling servers equipped with Nvidia accelerators. Companies like Alphabet, Amazon, Meta Platforms Inc., and Microsoft are preparing to invest around $725 billion in AI this year, although concerns about overcapacity and questions about how to monetize this technology persist. Since the outbreak of conflict in the Middle East, which has put significant pressure on global shipping routes and natural gas prices, worries about the rush to build energy-intensive data centers have also intensified.