Taiwan's Foxconn, the world's largest contract electronics manufacturer, posted first-quarter revenue of NT$2.13 trillion ($66.6 billion). That's a 29.7% jump year-on-year.

March alone: NT$803.7 billion, up 45.6% from a year earlier. A record for the month.

The Details

The growth engine is clear: cloud and networking products. Foxconn is Nvidia's primary server manufacturer, and demand for AI racks has been relentless. The AI server business now drives the company's trajectory more than its traditional role as Apple's largest iPhone assembler.

Smart consumer electronics, including iPhones, also posted "significant" growth from new product launches. But the AI division is where the momentum sits.

Revenue slightly missed the NT$2.148 trillion SmartEstimate, but the trend is consistent.

Beyond assembly

Foxconn is expanding on multiple fronts. This week, it announced a tie-up with Mitsubishi Fuso to develop and export electric buses from Japan to Southeast Asia and Australia. The partnership pairs Foxconn's EV platform expertise with Fuso's Japanese manufacturing base, targeting markets where Chinese EV competitors are gaining ground fast.

Chairman Young Liu expects continued growth in Q2, particularly in AI racks. But he flagged the Middle East conflict as a "major challenge" for global supply chains and energy costs.

The stock puzzle

Despite the strong numbers, Foxconn shares have dropped 16% this year. Taiwan's broader market is up 12% over the same period. The gap reflects investor anxiety about geopolitical risk, not business fundamentals.

Full first-quarter earnings land May 14. The real number to watch: AI server margins, and whether the Mitsubishi Fuso deal signals a broader diversification push beyond electronics assembly.

Sources: Nikkei Asia, Bloomberg, Investing.com

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