Foxconn Profit Jumps 35% as AI Servers Top Half of Revenue

Earnings
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Foxconn, formally Hon Hai Precision Industry, reported a 35% jump in second-quarter profit to NT$59.97 billion, or roughly $1.86 billion, beating the NT$58.8 billion analyst estimate cited by Reuters. Shares closed 2.7% higher Wednesday ahead of the results, and the company kept its call for strong full-year revenue growth. Cloud and networking products, powered heavily by AI servers, delivered 51% of quarterly revenue, marking the first time that segment has exceeded half of Foxconn's business, while smart consumer electronics including iPhones built for Apple came in at just 29%. Foxconn expects to begin preparing NVIDIA Vera Rubin server racks for mass production in the third quarter, with shipments targeted for the fourth, and 2026 capital spending is set to surge 30% as capacity expands across Taiwan, Mexico and Texas. Advanced CoWoS packaging could become a supply choke point, leaving Foxconn with more customer demand than available chips to turn into finished racks.

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Foxconn's AI server growth and preparation for NVIDIA Vera Rubin racks indicate strong demand for NVIDIA chips.

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