AI demand boosts iPhone maker Foxconn's second-quarter profit by 27%, beating forecasts

Core Insights - Foxconn reported a 27% year-over-year increase in operating profit for Q2 2025, driven by its expanding AI server business [1][3] - The company's net profit for Q2 reached NT$44.36 billion, surpassing LSEG's SmartEstimates of NT$38.81 billion [2] - Foxconn anticipates over 170% year-over-year revenue growth in its AI server business for the current quarter [3] Financial Performance - Revenue for the quarter was NT$1.79 trillion (approximately $59.73 billion), consistent with previous estimates [6] - Operating profit was NT$56.596 billion, compared to NT$49.767 billion in the prior year [6] Strategic Developments - Foxconn has formed a strategic partnership with TECO Electric & Machinery to invest in AI data centers [4] - The company is diversifying its operations, including ventures into electric vehicle assembly and semiconductor manufacturing [4] Market Position and Challenges - Foxconn is a key partner to Nvidia, manufacturing server racks designed for AI workloads [3] - The company has shifted most of its iPhone production for the U.S. market to India in response to U.S. tariffs [5]