Foxconn Rides AI Server Boom, Posts Forecast-Beating Q2 Profit

In the second quarter of 2025, Foxconn, the world's largest contract electronics manufacturer, reported a forecast-beating 27% increase in profit. The company attributes this strong performance to robust demand for its artificial intelligence (AI) servers, which are expected to see a remarkable year-on-year revenue growth of over 170% in the third quarter.

Foxconn, which is the biggest server maker for Nvidia and the top iPhone assembler for Apple, has been riding the wave of the data center boom. Cloud computing giants like Amazon, Microsoft, and Google have been spending billions to expand their AI infrastructure and research capacity, and Foxconn has been a key beneficiary of this trend.

In fact, Foxconn's revenue from its cloud and networking business, which includes AI servers, has now exceeded that of its smart consumer electronics division, which includes iPhones, for the first time ever. This shift reflects the company's efforts to diversify beyond its traditional role as an iPhone assembler and explore new growth opportunities.

Foxconn has also been looking to expand its footprint in the electric vehicle (EV) market, which it sees as a major future growth driver. However, the company's foray into EVs has not always gone smoothly, as evidenced by its recent decision to sell a former car factory in Ohio. Nevertheless, Foxconn remains committed to the EV space and is also exploring partnerships in the data center industry.

Despite the positive outlook, Foxconn has cautioned that global trade uncertainty could still pose challenges for its business this year, as it has a significant manufacturing presence in China. The company will need to navigate these geopolitical headwinds as it continues to capitalize on the growing demand for AI-powered technologies.