Foxconn expected to post strong Q1 profit growth on AI server demand

TAIPEI (Reuters) -Taiwan's Foxconn, the world's largest declaration electronics maker, is expected to study connected Wednesday that first-quarter nett leapt 72% connected continued beardown request for artificial quality servers.

Net nett for January-March for Apple's apical iPhone assembler and Nvidia's server shaper apt came successful astatine T$37.8 cardinal ($1.25 billion), according to an LSEG statement estimation of 13 analysts, versus T$22.01 cardinal a twelvemonth earlier.

Foxconn, formally called Hon Hai Precision Industry, said past period that its first-quarter gross jumped 24.2% to a grounds for that 4th connected beardown income of AI servers.

But planetary commercialized uncertainty could dim the prospects for its outlook this year, arsenic it has a large manufacturing beingness successful China, though Washington and Beijing connected Monday agreed to slash steep tariffs for astatine slightest 90 days.

Most of the iPhones it makes for Apple are assembled successful China. Foxconn is besides gathering a ample manufacturing installation successful Mexico - different people of U.S. President Donald Trump's tariffs - to nutrient AI servers for Nvidia.

In its April income report, Foxconn said portion the 2nd 4th should spot on-year maturation - the institution does not supply numerical guidance - the interaction of "evolving planetary governmental and economical conditions" would request continued adjacent monitoring.

Foxconn has besides been looking to grow its footprint successful electrical vehicles, which the institution sees arsenic a large aboriginal maturation generator.

Japanese automaker Mitsubishi Motors and Foxconn subsidiary Foxtron Vehicle Technologies past week announced the signing of a memorandum of knowing for the proviso of an electrical conveyance model.

Foxconn has antecedently said it would see taking a involvement successful Nissan for cooperation. Japan's third-biggest automaker is striving to marque its concern leaner and much resilient aft anemic income successful China and its biggest marketplace the United States.

Foxconn holds its net telephone astatine 3 p.m. (0700 GMT) successful Taipei connected Wednesday, wherever it volition besides update its outlook for the year.

Foxconn's shares person fallen 14% truthful acold this year, deed by concerns astir U.S. commercialized policy, compared with a 7% driblet for the broader Taiwan index.

($1 = 30.3070 Taiwan dollars)

(Reporting by Ben Blanchard; Editing by Christopher Cushing)