By George Glover

Foxconn Technology Group reported weaker-than-expected profit on Monday, fueling worries that the boom in demand for artificial-intelligence chips and servers could be about to run out of steam.

The Taiwanese electronics maker, formally known as Hon Hai Precision Industry, reported a net profit of 45.21 billion New Taiwanese dollars ($1.41 billion), as revenue jumped 22% from a year ago to NT$2.606 trillion.

Analysts were looking for a net profit of NT$61.93 billion on NT$2.450 trillion, according to a FactSet poll.

Foxconn's profit margin dropped to 5.88% from 6.35% a quarter ago.

The company said it expects strong growth in the AI server sector in 2026, despite tariffs and geopolitical uncertainty.

But the weak results could spark fears about faltering AI demand at a time when so-called hyperscalers have pledged to spend hundreds of billions of dollars on the technology.

Foxconn is best known in the U.S. for being the primary contract manufacturer for Apple's iPhones. The company has also worked to establish itself as an AI infrastructure powerhouse in recent years, making the servers that house Nvidia chips.

Hon Hai shares are down 6.1% so far this year, compared with a 15% gain for Taiwan's flagship TAIEX index.

Write to George Glover at george.glover@dowjones.com

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(END) Dow Jones Newswires

March 16, 2026 05:27 ET (09:27 GMT)

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