Foxconn's first-quarter profit increased by 91% due to the surging demand for AI, but the outlook for 2025 has become more conservative.

The world's largest electronics contract manufacturer Foxconn announced that its first-quarter profit surged 91% driven by strong demand for artificial intelligence servers, exceeding market expectations, but the full-year outlook has become more conservative. The Apple iPhone assembler and Nvidia AI server manufacturer recorded a net profit of NT$42.12 billion in the first three months, higher than the analysts' average forecast of NT$37.8 billion. Foxconn stated last month that, benefiting from strong AI server sales, first-quarter revenue increased by 24.2% year-on-year, reaching a historical high for the same period. In the financial report, Foxconn expects significant year-on-year growth in the second quarter, with double-digit growth in the AI server business and accelerated ramp-up of production. However, for full-year revenue, the company predicts a "significant year-on-year growth," a slight downgrade from the previous expectation of "strong growth." Foxconn did not provide detailed explanations as it usually does not offer specific numerical guidance. The company's stock price has fallen 11.4% year-to-date, while the market index has dropped by 5.4% during the same period. The stock rose by 3.2% at the close on Wednesday before the financial report was released.