Taiwan's Foxconn reported a 35 percent rise in second-quarter net profit to $59.97 billion New Taiwan dollars ($1.86bn), beating analyst expectations as companies race to build AI infrastructure.
The world's largest contract electronics maker said demand for AI servers used in data centers is driving its growth. Governments and major tech firms are spending heavily on data centers to train and run AI tools such as chatbots and image generators.
"AI infrastructure is driving growth," Foxconn said in its earnings announcement.
Foxconn, formally called Hon Hai Precision Industry, also assembles iPhones for Apple and is Nvidia's biggest server maker. In July, the company reported a 40 percent year-on-year jump in second-quarter revenue.
AI server production and geographic expansion
The company now builds the majority of iPhones sold in the United States at its factories in India, while most of its Apple production remains in China. Foxconn is also opening new factories in Mexico and Texas to manufacture AI servers for Nvidia.
Foxconn stuck to its previous forecast of "strong" growth for revenue this year. The company has also been expanding into electric vehicle manufacturing for AI learning path for CFOs
Why this matters for finance professionals
Foxconn's earnings show that AI infrastructure spending is not limited to software companies. Hardware manufacturers are seeing direct financial gains from the buildout. CFOs and finance teams tracking industry trends should note that server makers and component suppliers may offer risk-adjusted exposure to AI demand, distinct from bets on AI application companies themselves. AI for Finance covers how these supply chain shifts affect investment strategies.
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