Foxconn's Q2 profit jumps 35% YoY to $1.8B
What's the story
Taiwanese tech giant Foxconn, the world's largest contract electronics manufacturer, has reported a whopping 35% surge in its second-quarter profit. The company's net profit for the April-June period stood at NT$59.97 billion (approximately $1.86 billion), beating analyst expectations, and significantly higher than last year's NT$44.4 billion during the same period.
Revenue boost
Foxconn reports revenue growth
Foxconn, officially known as Hon Hai Precision Industry, also reported revenue growth in its second-quarter results.
The company has maintained its forecast of "strong" revenue growth for this year, driven largely by the rising demand for AI technology.
However, it has not provided any specific numeric forecasts for the same.
Business diversification
Foxconn diversifies into AI and EV sectors
Foxconn, which assembles most of Apple's iPhones in China, now manufactures a majority of those sold in the US in India.
The company is also expanding its operations to Mexico and Texas for AI server production for NVIDIA.
In addition to this, Foxconn is also venturing into the electric vehicle space as part of its business diversification strategy.
Market reaction
Shares rise after quarterly results announcement
Despite its impressive growth, Foxconn's shares have only risen 17% this year, underperforming the broader Taiwan index's 57% gain. However, today, the company's shares closed 2.7% higher after it announced its quarterly results.