Foxconn reports 19% profit rise in Q1 led by Nvidia-linked AI server sales

Foxconn (Hon Hai Precision Industry) reported a 19% increase in net income for its fiscal first quarter ended March 31, reaching NT$49.9 billion (US$1.6 billion), surpassing analyst estimates of NT$48.4 billion ^{[1, 2, 3]}. Sales rose about 30% over the same period, broadly in line with expectations ^{[1, 2]}.

The profit surge reflects strong demand for AI servers equipped with Nvidia accelerators. Large tech firms have ramped up AI capital spending, reaching an estimated US$725 billion this year, benefiting Foxconn's server business ^{[1, 2, 3]}. Foxconn Chairman Young Liu said, "Strong demand for AI servers will continue this year with high double-digit quarter-on-quarter growth expected for AI rack shipments in Q2" ^[3]. This growth defies the usual seasonal slowdown, as the company forecasts high double-digit increases in AI server rack shipments through the April–June quarter ^{[4, 3]}.

Foxconn also remains a major assembler of Apple iPhones and MacBooks. It stands to gain from the launch and sales of Apple's new iPhone 17, although the company has been diversifying its portfolio into AI servers, electric vehicles, and robotics to reduce reliance on lower-margin iPhone assembly ^{[2, 3]}.

Despite these gains, Foxconn warned of risks ahead. The company faces supply chain challenges stemming from ongoing Middle East conflicts. It also confirmed a cyberattack affecting some North American factories, though it said, "The affected factories are currently resuming normal production" after cybersecurity measures were deployed ^{[2, 3]}.

Taiwan Semiconductor Manufacturing Company (TSMC), a key supplier to Foxconn and others, noted geopolitics should not disrupt critical material supplies like helium and hydrogen, easing some concerns across the industry ^[3].

Foxconn’s fiscal Q1 results compare with a net income of NT$42.1 billion in Q1 2025, showing a clear upward trend in profitability and sales ^[3]. The company will release further quarterly performance details after the second quarter ends in June, when it expects continued strength in AI server sales.