Taiwan's Foxconn, formally known as Hon Hai Precision Industry, on Sunday reported April-June revenue of NT$2.513 trillion ($78.71 billion), surging 39.8% and beating analyst estimates of NT$2.372 trillion, while warning of risks from the volatile global political and economic situation. The company, a key manufacturer for Apple and Nvidia, attributed the revenue growth to strong AI demand for cloud and networking products and significant growth in smart consumer electronics including iPhones. AAPL stocks dipped 0.8% in overnight trading while NVDA stocks rose 0.3% ahead of Monday. Foxconn manufactures consumer electronics, AI servers, computing products, electric vehicles, and components for major U.S. technology companies.
Foxconn Reports NT$2.513 Trillion Q2 Revenue, Beats Estimates
Foxconn's revenue in the April-June period reached NT$2.513 trillion ($78.71 billion), exceeding the NT$2.372 trillion analysts' estimate from LSEG/Reuters. June revenue alone rose 52% to NT$821.8 billion.
The company stated that strong AI demand led to robust revenue growth for its cloud and networking products division, while smart consumer electronics, which includes iPhones, posted significant growth.
Foxconn, the world's largest electronics maker, produces consumer electronics, cloud and networking products including AI servers, computing products such as personal computers, electric vehicles, and other components. The company's shares in Taipei have gained 4.3% this year, underperforming the 61.5% rise for the Taiwan market.
Foxconn Forecasts Q3 Growth Amid Geopolitical Monitoring
Foxconn stated in its June report that AI rack shipments are expected to maintain growth in the third quarter, and operations will gradually gain momentum as ICT (Information and Communication Technology) products enter peak season.
The company said the outlook for overall operations expects both QoQ and YoY growth, though it remains necessary to monitor the impact of the volatile global political and economic situation. Foxconn did not elaborate on specific geopolitical concerns.
AAPL and NVDA Stocks Show Mixed Overnight Movement
AAPL stocks dipped 0.8% in overnight trading, while NVDA stocks rose 0.3% in overnight trading ahead of Monday. On Stocktwits, retail sentiment was bearish for both AAPL and NVDA.
AAPL shares rose nearly 5% on Thursday, the last day of the shortened week which had the Independence Day holiday, taking its year to date gains to 13.7%. NVDA has gained 4.6% year to date, and remains well below the gains in the benchmark S&P 500 index.
Apple recently raised prices across the majority of its products globally, citing rising prices of memory chips that go into them.
FAQ
What revenue did Foxconn report for the April-June period?
Foxconn reported revenue of NT$2.513 trillion ($78.71 billion) for the April-June period, representing a 39.8% increase and beating analyst estimates of NT$2.372 trillion from LSEG/Reuters.
How did AAPL and NVDA stocks perform in overnight trading?
AAPL stocks dipped 0.8% in overnight trading ahead of Monday, while NVDA stocks rose 0.3% in overnight trading. Retail sentiment on Stocktwits was bearish for both stocks.
