Foxconn earns more from AI than iPhone — profit up 35%
NVIDIA
Foxconn, historically Apple's largest contract manufacturer, has become the largest supplier of server systems for Nvidia and its clients. In Q2, net profit rose 35% to $1.86 billion, beating analyst expectations. The company remains confident in AI infrastructure demand supporting revenue growth through year-end.
Taiwan's Foxconn, historically the largest contract manufacturer of Apple devices, has now become the largest supplier of server systems for Nvidia and its clients. Amid the AI boom, Foxconn's net profit in the second quarter rose 35% to $1.86 billion, beating analyst expectations. Company representatives expressed confidence that demand for AI infrastructure components will sustain strong revenue growth through the end of the year. They did not disclose quantitative forecast figures nor comment on client relationship details. Last month, Foxconn reported a 40% increase in quarterly revenue. Foxconn's business with Apple has transformed in recent years — it still assembles most iPhones in China, but smartphones sold to the US market are mainly assembled in India. The Taiwanese contractor is ready to produce server systems for Nvidia in the US and Mexico. Since the start of the year, Foxconn shares have risen 17% due to its involvement in AI infrastructure component supply chains, although it earns much less from its services than its end clients.
Source: 3DNews —
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