Foxconn Rides AI Wave to $50 Billion Quarter

Hon Hai Precision Industry Co., the world's largest contract electronics manufacturer, reported a 24% jump in revenue for the first quarter of 2025 as the global boom in artificial intelligence hardware continues to accelerate.

The company, widely known as Foxconn, said sales for the three months reached $49.8 billion. This performance met analyst expectations and marks the company’s strongest quarterly growth since 2022.

The results highlight Foxconn’s transition from a primary focus on smartphones to a leader in AI infrastructure. As a major manufacturer of servers for NVIDIA, Foxconn is benefiting from massive spending by tech giants such as Alphabet, Amazon, and Meta. These companies are investing heavily in data centers to support the development of AI models.

While Foxconn remains the lead assembler for Apple’s iPhone, its "cloud and networking" division has become its most significant growth engine. The company stated that it expects the demand for AI servers to remain strong through the second quarter, even as the broader consumer electronics market remains sluggish.

To meet this rising demand and diversify its operations, Foxconn is expanding its manufacturing footprint in the United States. The company is currently adding new production lines for AI servers at its facilities in Texas and Wisconsin. It has also partnered with Apple to begin server manufacturing at a site in Houston.

Despite the strong sales figures, the company noted that it is monitoring broader economic conditions. While the AI sector remains a bright spot, industry analysts are watching for signs of market volatility and shifting investment levels among the world's largest cloud service providers.