Foxconn Q2 Net Profit Up 35% YoY, AI Server Revenue Share Surpasses 50% for First Time

According to The Straits Times, Taiwan Foxconn (Hon Hai Precision Industry) announced its Q2 financial report on August 12, with net profit increasing 35% year-on-year to NT$59.97 billion (approximately SGD 2.38 billion), exceeding analysts' expectations of NT$58.8 billion. Specifically, revenue from cloud and networking products (including AI servers) accounted for 51%, breaking through 50% for the first time, while smart consumer electronics (including iPhone) accounted for 29%. Rotating CEO Shang-Yi Chiang stated that AI-related business will continue to grow in Q3, and coupled with the peak season effect of ICT products, significant quarter-on-quarter growth is expected. Nvidia's new generation Vera Rubin AI server racks will enter preparation for mass production in Q3 and start shipping from Q4, expected to become Foxconn's core product next year. In addition, Foxconn expects capital expenditure in 2026 to increase 30% year-on-year, and will continue to expand AI server and electric vehicle manufacturing capacity in India, Mexico, and Texas, USA. The company's stock price has risen 17% year-to-date, closing up 2.7% for the day.