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Foxconn Profits Soar on AI Demand Surge

14 May

Summary

First-quarter profit rose 19% year-over-year.
Strong global demand for AI products drove earnings.
Company forecasts 'strong' revenue growth this year.

Foxconn, the world's largest contract electronics maker, reported a 19% year-over-year increase in its first-quarter profit. This performance surpassed analyst expectations, fueled by substantial global demand for AI products.

The company's net profit for January-March reached T$49.92 billion, outperforming LSEG consensus estimates. Foxconn reiterated its forecast for "strong" revenue growth throughout the current year.

This strong financial showing comes as Foxconn, a key supplier for Nvidia's AI servers and Apple's iPhones, experiences high demand for AI-related hardware. The company is expanding its manufacturing capabilities in India, Mexico, and Texas.

While electric vehicles represent a future growth area, Foxconn recently sold a former EV factory in Ohio. The company's shares have seen a modest rise of 6% this year, underperforming the broader Taiwan index.

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