Foxconn's revenue continued to rise in August, indicating that AI server orders are still supporting the growth of this contract manufacturing giant. The company achieved revenue of NT$921.8 billion in August, which is approximately $29.1 billion, a year-on-year increase of 51.98%. This is also its second consecutive month with monthly revenue exceeding NT$900 billion.
Revenues in the first 8 months reached a new high for the same period.
From January to August this year, Foxconn's cumulative revenue reached NT$6.51 trillion, an increase of nearly 40% compared to the same period last year, setting a new high for that time frame. For a long time, Foxconn's most well-known business has been manufacturing products for Apple and iPhone, but the latest data indicates that the focus driving the company's growth is shifting.
The company stated that cloud and network products saw a significant increase in August compared to the previous month. In contrast, smart consumer electronics products experienced a slight decline from July, as customers were in the transition period between old and new products.
AI Servers connect cloud and network services
In the latest quarterly performance report, management mentioned that the continuous investment from hyperscale cloud service providers is driving the continued growth in demand for AI server cabinets. In the second quarter, Foxconn's revenue increased by 41% year-on-year to NT$2.53 trillion, and its net profit increased by 35% year-on-year to approximately NT$60 billion.
The company expects that both its cloud and networking businesses will achieve high double-digit growth in the third quarter, both on a quarter-on-quarter and year-on-year basis. The official performance document also mentions that the demand for AI related capacity is expected to remain strong before 2027.
NVIDIA chain overflow to the entire machine and data center
This also makes Foxconn an important indicator for observing AI infrastructure investment. Market demand is no longer reflected only in NVIDIA GPU sales; it has also begun to affect the assembly of complete machine cabinets, network systems, and data center hardware.
Foxconn is expanding the production capacity of its AI servers, with a layout covering China, Taiwan, Mexico, Vietnam, and the United States. The company previously stated that its capital expenditures in the U.S. would increase, involving locations such as Texas, Wisconsin, Ohio, and California.
As the construction of data centers progresses, AI infrastructure investment continues to spread to areas such as chips, network equipment, servers, power supply, and computer rooms. For Foxconn, the revenue performance in August further indicates that the company is shifting from being a " iPhone contract manufacturer" to a manufacturer driven more by the demand for AI servers.
