TAIPEI: Apple provider Foxconn reported on Wednesday a 6% rise in second-quarter internet revenue, pushed by robust AI server demand as the corporate touted “robust development momentum” from the know-how growth.
The Taiwanese firm, the world’s largest contract electronics maker, mentioned internet revenue for the April-June quarter rose to T$35.05 billion ($1.09 billion) from T$33 billion in the identical interval the earlier 12 months.
That beat analysts’ common estimate of T$34.29 billion.
It was the agency’s fourth consecutive quarterly revenue rise.
The corporate mentioned AI servers accounted for greater than 40% of its server enterprise within the second quarter, saying its subsequent technology AI computing resolution has introduced “robust development momentum.”
Foxconn had beforehand anticipated income for the second quarter to develop considerably from a 12 months earlier, though income from sensible laptop electronics together with smartphones was more likely to be flattish.
The corporate, formally known as Hon Hai Precision Trade Co Ltd, has anticipated its operations to choose up progressively within the second half as many electronics distributors together with Apple normally launch new merchandise forward of the year-end vacation season.
In a report previous to the earnings announcement, Taipei-based KGI Securities revised up its gross sales forecast for Foxconn this 12 months, saying robust demand for brand new iPhones and AI servers have been more likely to result in a better-than-expected outlook for the agency within the second half.
