Foxconn Industrial Internet Hits Record Highs as AI Demand Surges

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Thanks to rapid growth in its artificial intelligence-related operations, the technology division of this major manufacturer reported impressive results for the first half of the year, according to its latest financial disclosures.

During the first six months, the company posted a net profit of approximately $1.7 billion, representing a 39% increase compared to the same period last year. Revenues also surged by 36%, reaching around $50.2 billion. This financial performance was detailed in a report released yesterday by the Shenzhen-based maker of communication and network equipment.

In the second quarter alone, net profit and revenue grew by 51% and 36%, respectively, both hitting record highs for the period. Quarterly net profit reached about $960.7 million, with revenue hitting approximately $27.9 billion. These figures aligned with the earnings forecast the company shared earlier in July.

Market reaction was modest today, with shares closing slightly down by 0.66% at $5.06. However, the stock had previously jumped by 10.3% after the earnings outlook was announced on July 8, boosting its year-to-date gain to 74%.

The company noted a significant increase in demand for high-end artificial intelligence servers, spurred by advances in generative AI and the rapid development of related ecosystems. Server revenue in the second quarter rose over 50%, with AI server revenue climbing more than 60%.

Additionally, manufacturers of smartphones and wearable devices have been rushing to incorporate more sophisticated AI features, driving the need for upgrades in high-end mobile hardware. This trend resulted in a 17% year-over-year increase in the shipment of precision components during the first half of the year.

The rising demand for AI computing power has also propelled strong growth in the high-performance network equipment market. The company’s high-speed switches, capable of transmitting data at 800 gigabytes per second, saw sales increase nearly four times over the first half of last year, reflecting the booming need for faster data transmission solutions.