Foxconn has become the primary contract manufacturer for server equipment for Nvidia and its clients. This strategic position allows the company to maintain a strong correlation between its financial performance and the the AI industry's growth.
The company's August revenue reached a seasonal record of over $29 billion. This represents a 52% increase in revenue for the month, driven by the growth of AI technologies.
Analysts expect a 37% increase in Foxconn's revenue by the end of the current quarter, which concludes in September. Additionally, the company's second-quarter profit grew by 35%, exceeding analyst expectations.
Foxconn forecasts that the second half of the year will be more successful in server sales, which could further accelerate financial growth. However, the company remains heavily dependent on Apple's contract manufacturing, particularly for iPhones, which makes it vulnerable to consumer electronics market downturns.
