TAIPEI (Reuters) – Taiwan’s Foxconn, the world’s largest contract electronics maker, is expected to report on Tuesday that first-quarter profit more than doubled on robust demand for artificial intelligence servers and after coming off a low base a year ago.
Last month, the company said first-quarter revenue slid 10% from a year earlier but it has been bullish about 2024.
Net profit for January-March for Apple’s top iPhone assembler likely came in at T$29.3 billion ($904.6 million), according to an LSEG consensus estimate of 15 analysts.
That would represent a 129% increase from the same period a year ago when profit sagged after the company took a T$17.3 billion writedown related to its 34% stake in Japanese electronics maker Sharp Corp. It would also mark a third consecutive quarter of profit growth.
“Foxconn obviously is putting a lot of effort into its AI servers. Targeted clients include HP and Dell,” said Allen Huang, a vice president at Mega International Investment Service.
KGI Securities analysts predict Foxconn’s sales to reach a low point in the first quarter. Demand for AI cloud servers remains robust.
“As for 2025, we expect cloud sales to remain the major sales and earnings growth driver,” they added.
The projected increase in Foxconn Q1 profit reflects the company’s concerted efforts to adapt and evolve in a rapidly changing technological landscape. Foxconn aims to enhance financial performance and global competitiveness through AI technology advancements.
Foxconn Q1 profit is anticipated to benefit from the integration of AI into its operations. By leveraging AI-driven insights and automation, Foxconn can optimize production processes, improve product quality, and drive innovation.
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