Hon Hai Group’s headquarters in Taipei, Taiwan.
Ceng Shou Yi | Nurphoto | Getty Photographs
Apple provider Foxconn reported on Wednesday a 6% rise in second-quarter web revenue, pushed by robust AI server demand as the corporate touted “robust progress momentum” from the know-how increase.
The Taiwanese firm, the world’s largest contract electronics maker, mentioned web 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 12 months.
That beat analysts’ common estimate of NT$34.29 billion.
It was the agency’s fourth consecutive quarterly revenue rise.
The corporate mentioned AI servers accounted for greater than 40% of its server enterprise within the second quarter, saying its subsequent technology AI computing resolution has introduced “robust progress momentum.”
Foxconn had beforehand anticipated income for the second quarter to develop considerably from a 12 months earlier, though income from sensible laptop electronics together with smartphones was prone to be flattish.
The corporate, formally referred to as Hon Hai Precision Business Co Ltd, has anticipated its operations to choose up regularly within the second half as many electronics distributors together with Apple normally 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 12 months, 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.
