Foxconn Q1 profits jump 72% as AI server demand soars

14th May 2024 11:12

(Sharecast News) - Taiwanese electronics giant and iPhone assembler Foxconn on Tuesday reported a huge surge in first-quarter profits as it delivered a confident outlook for the current quarter due to strong demand for its AI servers.

Net profit totalled 22bn New Taiwan dollars (£540m) in the three months to 31 March, up 72% on the year before, with key profit margins all improving. The previous year's results were held back by a NT$17bn impairment on its stake in Sharp.

The company, officially known as Hon Hai Precision Industry, said revenues were down 9% at NT$1.324trn (£32.6bn), but sales from AI servers soared by nearly 200% year-on-year.

"Looking ahead at the second quarter, despite its traditional off-peak season and with the exception of smart consumer electronics, the other three major product segments should experience strong growth, reflecting the group's leading edge in the ICT industry and capabilities to attract new business," the company said in a statement.

Foxconn projected "significant" growth in the second quarter above its historic average, and while the full-year outlook for "neutral to significant growth" remains unchanged, full-year visibility over numbers is now better than at its investor conference in March.