Taiwan's Foxconn, the world's biggest electronics contractor, reported an annual increase of 39.8% in second-quarter revenue that beat market forecasts driven by strong demand for artificial intelligence products, although the company cautioned about "volatile" global politics.
Revenue for Nvidia's biggest server maker and Apple's top iPhone assembler jumped to NT$2.513 trillion ($78.71 billion) in the April-June quarter, Foxconn said in a statement on Sunday.
That was above a NT$2.372 trillion projected in LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.
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, the company said.
June revenue alone rose 52.1% year-over-year to NT$821.8 billion, a record for that month.
Operations are expected to grow both quarter-on-quarter and year-on-year in the third quarter, with AI racks maintaining a growth trend, the company said.
However, "it remains necessary to monitor the impact of the volatile global political and economic situation," Foxconn said, without elaborating.
Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts.
The company's shares have gained 4.3% this year, underperforming the 61.5% rise for the Taiwanese market.
The stock closed up 0.6% on Friday ahead of the revenue data release. The benchmark index ended the day flat.
