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Published on
August 14, 2025
5 min read
Foxconn Posts 27% Q2 Profit Surge on Soaring AI Server Demand
Taiwan’s Foxconn reported profits in Q2 due to growth in AI demand that significantly exceeded market expectations and analyst forecasts. According to CNBC, the world’s largest contract electronics manufacturer reported a 27% YoY increase in operating profit on Thursday.
Foxconn’s Q2 earnings beat forecast performance, demonstrating the company’s successful pivot toward high-demand AI infrastructure. Second-quarter revenue rose 16% YoY, matching LSEG’s SmartEstimates. Net profit reached $1.49 billion, surpassing expectations of $1.30 billion. Its shares are up 8.4% this year, beating the broader Taiwan index’s 5.2% rise. They jumped by 0.5% on Thursday, ahead of the earnings announcement.
In Q2, servers brought in 41% of Foxconn’s revenue, beating smart consumer electronics, which made up 35%. Foxconn expects its AI server sales to keep growing this quarter, with revenue set to jump over 170% from last year.
AI Server Business Drives Growth
Foxconn’s Profit AI Server Demand surge reflects the global boom in artificial intelligence infrastructure. Foxconn expects higher third-quarter revenue on strong demand for artificial intelligence servers, indicating this trend will continue throughout 2025.
The company’s AI server division has become increasingly important as tech giants invest heavily in AI capabilities. Major cloud service providers and AI companies are racing to build data centers equipped with powerful servers to support their artificial intelligence workloads.
Kathy Yang, rotating CEO of Foxconn, said on a call with media and analysts, “AI has been the primary growth driver so far this year, close attention is needed due to the impact of changes in tariffs and exchange rates.”
Market Diversification Strategy Pays Off
Foxconn’s profit surge due to AI demand highlights how the company’s strategic diversification has paid dividends. While Foxconn built its reputation as an iPhone assembler, the company has successfully expanded into high-growth technology sectors.
Foxconn reported a stellar second quarter for 2025 as it continues to pivot towards artificial intelligence infrastructure. This transition demonstrates management’s ability to identify and capitalize on emerging technology trends.
U.S. President Donald Trump’s global tariffs could affect Foxconn’s outlook this year. Due to the tariff threats, the company has shifted most final production of U.S.-bound iPhones to India. Taiwan is currently facing a 20% “temporary tariff” from the U.S., with trade talks still underway. Last week, Trump also announced plans for a 100% tariff on semiconductor and chip imports, excluding companies that manufacture within the United States. The company said Thursday it will increase capital spending by over 20% this year to expand server production capacity at its Texas and Wisconsin plants.
