Apple supplier Foxconn's profit beats forecasts as it rides AI boom
Q2 net profit T$35.05 bln vs T$33 bln previous year
Foxconn says development on track for Nvidia GB200 chip
Forecasts AI servers to be next trillion-dollar revenue product
Adds details from earnings call and Foxconn statement, bullets
By Yimou Lee and Faith Hung
TAIPEI, Aug 14 (Reuters) -AppleAAPL.O supplier Foxconn 2317.TW on Wednesday surpassed expectations with a 6% rise in quarterly net profit, driven by a boom in demand for AI servers, and stood by its forecast for full-year revenue to grow significantly.
The world's largest contract electronics maker said it expected robust demand for artificial intelligence servers to continue to boost growth into the fourth quarter.
Foxconn said the development schedule for AI semiconductor leader Nvidia's NVDA.O GB200 chip was on track, adding product delivery will start in the fourth quarter in small volumes, which would rise in early 2025.
"If the schedule remains unchanged, the performance of the entire AI server segment may be better than originally estimated," Foxconn vice president and spokesman James Wu said.
Wu emphasized Foxconn's leading position in the AI server market, which he said accounted for than 40% of the global market share, adding its capacity and technology would not be easily challenged by competitors.
"That will not be changed in a short time," he said.
TheTaiwanese company said net profit for the April-June quarter rose to T$35.05 billion ($1.09 billion) from T$33 billion in the same period the previous year.
That beat analysts' average estimate of T$34.29 billion.
It was the fourth consecutive quarterly profit rise for the company.
Foxconn said AI servers made up more than 40% of its server business in the second quarter and it forecast "AI servers should soon become Foxconn's next trillion-dollar revenue product" in Taiwan dollar terms.
The company also wants to replicate the success it has had with manufacturing iPhones with the electric vehicles (EV) business. It said on the call that ongoing talks with two traditional car makers in Japan would be finalised this year.
"Rub your eyes and wait," Wu said, without naming the companies.
On the full-year outlook for its smartphone business, Foxconn said it remained "flattish" due to a higher base in the first half of last year, adding that the outlook for the second half of this year is better than the corresponding period in 2023.
The company expected revenue for the third quarter to grow significantly from a year earlier, although revenue from smart consumer electronicsincluding smartphones was likely to be flat.
Formally called Hon Hai Precision Industry Co Ltd, Foxconn has expected its operations to pick up gradually in the second half as many electronics vendors, including Apple, usually release new products ahead of the year-end holiday season.
Prior to the earnings announcement, Taipei-based KGI Securities revised up its sales forecast for Foxconn this year, saying strong demand for new iPhones and AI servers could support a better-than-expected outlook in the second half.
Shares of Foxconn closed up 2.5% ahead of the results announcement.
Reporting By Yimou Lee and Faith Hung; Editing by Muralikumar Anantharaman, Kim Coghill and Bernadette Baum
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
