Taiwan-based Foxconn, the world’s largest contract electronics manufacturer, is expected to report a 72% jump in first-quarter profit, driven by strong demand for artificial intelligence (AI) servers.
The company, formally known as Hon Hai Precision Industry, is the main assembler of Apple’s iPhones and a key supplier of servers for Nvidia. According to a consensus estimate by LSEG from 13 analysts, Foxconn’s net profit for January to March likely reached T$37.8 billion ($1.25 billion), up from T$22.01 billion in the same period last year.
Last month, Foxconn reported a 24.2% rise in first-quarter revenue, marking a record for that quarter. The growth was mainly due to strong AI server sales.
However, the company’s future outlook faces uncertainty due to global trade tensions. While the United States and China agreed on Monday to temporarily reduce tariffs for 90 days, Foxconn’s heavy reliance on Chinese manufacturing could still pose risks.
Most of the iPhones made for Apple are assembled in China. Meanwhile, Foxconn is also expanding its manufacturing in Mexico to build AI servers for Nvidia. Mexico, like China, has also been affected by U.S. trade policies.
In its April sales report, Foxconn said it expects year-on-year growth in the second quarter. However, it cautioned that the global political and economic environment remains unpredictable and must be monitored closely. The company did not provide exact figures.
Foxconn is also pushing into the electric vehicle (EV) market, which it sees as a key area for future growth. Last week, its EV unit, Foxtron Vehicle Technologies, signed a memorandum of understanding with Japan’s Mitsubishi Motors to supply an electric vehicle model.
Foxconn has also expressed interest in partnering with Nissan, possibly by taking a stake in the automaker. Nissan is seeking to streamline operations after weak sales in China and the United States.
Foxconn will hold its earnings call at 3 p.m. local time (0700 GMT) on Wednesday, where it is expected to provide more insight into its full-year outlook.
So far this year, Foxconn shares have fallen 14%, underperforming the broader Taiwan stock index, which is down 7%, as investors remain cautious over U.S. trade policies.
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