Hon Hai's cloud solution unit forecast Q2 net profit to soar over 50%

Taipei, July 8 (CNA) Foxconn Industrial Internet Co. (FII), manufacturing giant Hon Hai Precision Industry Co.'s cloud solutions provider, expects its second quarter net profit to grow more than 50 percent due to its booming artificial intelligence server business.

FII, which has been listed on the Shanghai Stock Exchange since 2018, said in a statement Monday that its net profit for the quarter will grow between 47.72 percent and 52.11 percent from a year earlier to between 6.73 billion Chinese yuan (US$939 million) and 6.93 billion yuan.

The fast growth of cloud services was the main driver of sales growth during the quarter at a time of growing popularity of AI devices, in particular hyper-scale AI server racks, the company said.

Revenue generated from AI servers during the three-month period surged more than 60 percent from a year earlier, while sales posted from servers destined for cloud service providers jumped more than 150 percent from a year earlier, FII said.

In addition, FII's advanced AI computing graphics process unit modules and GPU substrates also saw substantial growth in sales in the second quarter, the company said.

On the back of a strong second quarter, FII said it anticipated its net profit for the first half of 2025 will grow between 36.84 percent and 39.12 percent from a year earlier to between 11.96 billion yuan and 12.16 billion yuan.

FII's forecasts echoed Hon Hai's strong sales in the second quarter that resulted from the strong shipments of its cloud and networking division as well as the electronics component operations.

Over the weekend, Hon Hai said its consolidated sales for the April-June quarter rose 15.82 percent from a year earlier to about NT$1.80 trillion (US$61.90 billion). Second quarter revenue also grew 9.45 percent from a quarter earlier.

Hon Hai will hold an investor conference on Aug. 14 to detail its second quarter results and give guidance for the third quarter as well as 2025 as a whole.