Foxconn, one of the world’s biggest electronics manufacturers and a major supplier to companies including Apple and Nvidia, expects its third-quarter performance to beat market expectations as demand for artificial-intelligence products continues to grow.

The company said strong AI demand and the seasonal technology-production cycle should support its business. 

Foxconn reported record revenue of T$921.8 billion, about $29.15 billion, in August, representing a 51.98% increase from a year earlier.

It was the second consecutive month in which the company’s monthly revenue exceeded T$900 billion, demonstrating the strength of demand flowing through its electronics-manufacturing business. 

The company has benefited significantly from the global expansion of AI infrastructure. 

Foxconn manufactures servers and other technology hardware used by companies building large data centres, making it an important part of the supply chain supporting the AI industry.

The strong performance also benefits from the company’s relationship with major technology brands. 

Foxconn is a major manufacturing partner for Apple and also supplies technology hardware connected to Nvidia’s AI business, meaning changes in demand from these companies can have a significant effect on Foxconn.

Despite its positive outlook, Foxconn has warned that global political and economic uncertainty could affect its operations. 

Nevertheless, the company’s record August revenue and expectations for a stronger third quarter show how rapidly AI-related demand is reshaping the electronics manufacturing industry. 

Source: Reuters