Foxconn second-quarter revenue jumps, company cautions on geopolitics

TAIPEI, July 5 (Reuters) - ‌Taiwan's Foxconn, ​the ​world's largest contract electronics maker, reported a 39.8% year-on-year rise in second-quarter revenue that beat ‌market forecasts on strong demand for AI products, ⁠though it cautioned about "volatile" global politics.

Revenue for Nvidia's biggest server ‌maker and Apple's top ‌iPhone assembler jumped to T$2.513 trillion ($78.71 billion) in the April-June quarter, Foxconn said in a statement on ​Sunday.

That was above a T$2.372 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts ⁠who are more consistently accurate.

Strong AI demand led to robust revenue growth for ​its cloud and networking products division, while smart consumer electronics, which includes iPhones, posted "significant" ​growth, the company said.

June revenue ‌alone rose 52.1% year-on-year to T$821.8 billion, a record for that month.

Operations are expected ⁠to grow both quarter-on-quarter and year-on-year in the third quarter, with AI racks maintaining a growth trend, the company ⁠said.

However, "it remains necessary to monitor the impact of the volatile global ​political and economic situation", Foxconn said, without elaborating.

Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts.

The company's ‌shares have gained 4.3% this year, underperforming the 61.5% rise for the Taiwan market.

The ‌stock closed up 0.6% on Friday ahead of the ⁠revenue data release. The ‌benchmark index ended ​the day flat.

($1 = 31.9260 Taiwan dollars)

(Reporting by Ben Blanchard; Editing by William Mallard and Jamie ‌Freed)

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