(Bloomberg) — Hon Hai Precision Industry Co. Ltd.’s April-June sales beat analysts’ rising expectations on strong growth in the company’s AI server business.
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iPhone assembler Foxconn said on Friday its June sales rose to NT$490.7 billion ($15.1 billion), bringing its quarterly total to NT$1.55 trillion, up 19 percent. Analysts' average estimate was for a 13.8 percent increase, boosting hopes after Hon Hai said a month ago it expected its AI business to help it beat quarterly expectations.
Foxconn’s Taipei-listed shares have more than doubled this year, hitting a record high in June on hopes the company can capitalize on the AI boom.The company had a tough 2023, with sales shrinking amid sluggish demand for the consumer electronics it assembles.But it has been rapidly growing revenue from orders for artificial intelligence servers and other data center equipment as it moves beyond its mature smartphone-making business.
“We expect growth in the third quarter compared to the second quarter and the same period last year,” Foxconn said in a statement accompanying its monthly sales announcement on Friday.
Anticipation over Foxconn's role in the AI hardware market has seen the company's shares surpass the NT$200 mark that founder Terry Gou promised to hit in 2016. The AI boom has also drawn significant attention to Taiwan this year, with the most recent COMPUTEX event a huge success, with CEOs of some of the biggest US chipmakers gathering to lure key suppliers and data center equipment makers.
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