Foxconn's (Hon Hai Precision Industry) August revenue, the Taiwan-based assembly partner for Nvidia's artificial intelligence servers, was tallied at 921.8 billion Taiwan dollars (about 39.2 trillion won), up 52% from a year earlier.
It was the highest ever for August and, following July, the second highest on a monthly basis. The month-over-month growth rate was 52%, a slight slowdown from July's 54%. Bloomberg said the revenue beat market expectations.
The cloud and networking business and the components business drove earnings growth on the back of artificial intelligence demand. Analysts expect third-quarter (July–September) revenue to increase by 37%, and Foxconn also projected that shipments of AI server racks would grow in the high-10% range from the previous quarter, with third-quarter revenue set to top market forecasts.
Foxconn, the world's largest electronics manufacturing services (EMS) company, is in charge of assembling Nvidia's AI servers such as the GB200 and GB300, making its monthly reported revenue a representative leading indicator for gauging global AI infrastructure investment trends.
However, Bloomberg noted that Foxconn's results are also linked to the relatively low-margin Apple iPhone assembly business, and that Apple is diversifying its supplier base to companies such as Luxshare Precision Industry, which should be taken into account.