This article first appeared on GuruFocus .
Foxconn ( FXCOF ) formally Hon Hai Precision Industry, reported a 35% jump in second-quarter profit, and the headline number may not even be the most important part of the story. Net profit hit NT$59.97 billion, or roughly $1.86 billion, beating the NT$58.8 billion analyst estimate cited by Reuters. Shares closed 2.7% higher Wednesday ahead of the results. Foxconn also kept its call for strong full-year revenue growth. But forget the old image of Foxconn as simply the company assembling iPhones. AI is rapidly rewriting this business.
The numbers make that shift impossible to miss. Cloud and networking products, powered heavily by AI servers, delivered 51% of quarterly revenue. That is more than half of Foxconn's business for the first time. Smart consumer electronics, including the iPhones it builds for Apple ( NASDAQ:AAPL ), came in at just 29%. That is a massive 22-percentage-point gap. AI infrastructure is no longer a side bet sitting next to the Apple machine. It is becoming the machine. The GuruFocus backs up the improving fundamental story, with Foxconn scoring 79/100 on the GF Score for 2026. Financial strength and growth are the clear standouts, while GF Value remains the weaker piece. Translation: the business is getting stronger, but the stock does not necessarily look dirt cheap.
Now comes the next gear. Foxconn expects to begin preparing NVIDIA ( NASDAQ:NVDA ) Vera Rubin server racks for mass production in the third quarter, with shipments targeted for the fourth, while 2026 capital spending is set to surge 30% as capacity expands across Taiwan, Mexico and Texas. The catch is supply. Advanced CoWoS packaging could become the choke point, leaving Foxconn with more customer demand than available chips to turn into finished racks. That is the number investors should watch next. Foxconn has already proved AI can take over the revenue mix. If that explosion in AI server sales starts pulling margins higher too, the market may have to rethink what Foxconn is worth.
