Taiwanese electronics giant Foxconn posted a 19% rise in first-quarter profit, beating market estimates as global demand for artificial intelligence infrastructure continued to surge.
The company reported a net profit of T$49.92 billion ($1.58 billion) for the January-March quarter, ahead of analysts’ expectations of T$48.88 billion. The growth came largely from its cloud and networking business, which includes AI servers used by major technology firms.
Foxconn, formally known as Hon Hai Precision Industry, is the world’s largest contract electronics maker and a major supplier to Apple and NVIDIA.
The company said demand for AI servers remained strong as cloud service providers and technology companies accelerated investments in data centers and AI computing infrastructure.
Foxconn expects AI server revenue to double this year. The company also plans to increase capital expenditure by nearly 30% in 2026 to expand production capacity for AI-related hardware.
Executives described artificial intelligence as a long-term industry shift rather than a temporary boom. The company has increasingly positioned itself as a key manufacturing partner in the AI supply chain, particularly for GPU-based servers used to train and run large AI models.
Last month, Foxconn had reported a 30% jump in first-quarter revenue, driven mainly by AI-related products. Cloud and networking products now account for a growing share of the company’s overall business.
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Foxconn continues to diversify manufacturing operations outside China amid geopolitical tensions and supply chain realignments.
The company has expanded iPhone production in India and is building new AI server manufacturing facilities in Mexico and Texas. The expansion aligns with growing efforts by global technology companies to reduce dependence on China-centric supply chains.
Despite the strong quarter, Foxconn cautioned that broader uncertainties, including trade tensions and fluctuations in raw material costs, could affect the electronics sector in the coming months.
Still, the company’s latest results underline how the global AI boom is reshaping the fortunes of hardware manufacturers at the center of the technology supply chain.