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Foxconn Industrial Internet's H1 Attributable Profit Nearly Doubles on AI Surge

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Foxconn Industrial Internet's H1 Attributable Profit Nearly Doubles on AI Surge

Foxconn Industrial Internet's (SHA:601138) attributable net profit jumped 96% to 23.7 billion yuan in the first half from 12.1 billion yuan a year earlier, according to a Wednesday filing with the Shanghai Stock Exchange.

Earnings per share climbed 97% year on year to 1.20 yuan from 0.61 yuan.

Operating revenue rose 55% to 557.9 billion yuan from 360.8 billion yuan in the previous year.

Revenue from its main business jumped to 557.2 billion yuan from 360.1 billion yuan, while revenue from the company's other businesses inched up to 645.6 million yuan from 643.6 million yuan.

Foxconn Industrial Internet's cloud computing business saw revenue grow about 76% year over year, with artificial intelligence-related businesses contributing highly to the increase, the company said in its filing.

Cloud service provider AI server revenue increased 2.3 times yearly, while GPU AI cabinet shipments grew 3.2 times. ASIC AI cabinet shipments jumped threefold, and ASIC CPU server shipments expanded 2.5 times during the period.

The company also cited improvements in its automation process, while its communication and mobile network equipment segment also saw steady revenue growth.

Operating costs jumped 53% year over year to 518 billion yuan from 336.9 billion yuan.

What else is happening in US Markets?

Zydus Lifesciences' Profit Falls 36% on Higher Expenses; Revenue Jumps 22%
US Markets

Zydus Lifesciences' Profit Falls 36% on Higher Expenses; Revenue Jumps 22%

Zydus Lifesciences (NSE:ZYDUSLIFE, BOM:532321) reported a 35.9% year-over-year drop in consolidated net profit in the fiscal first quarter, weighed down by ballooning expenses that offset the 22% jump in revenue.Net profit plunged to 9.40 billion rupees from 14.7 billion rupees a year earlier, with earnings per share also falling to 9.35 rupees from 14.58 rupees, the Indian drugmaker said in a bourse filing on Tuesday.Meanwhile, revenue from operations rose 22% to 80.2 billion rupees, the company's highest quarterly revenue on record, from 65.7 billion rupees a year ago.In a presentation on Tuesday, Zydus attributed the revenue growth to its core pharmaceutical business as India-branded formulations sustained robust growth momentum and outpaced the market growth for another quarter.The company said its North America formulations business expanded sequentially on the back of sustained volume expansion and new product launches.However, larger expenses hit the company's bottom line as total expenses ballooned to 25.4 billion rupees from 22.7 billion rupees.During the quarter, Zydus booked severance compensation of 1.09 billion rupees tied to its acquisition of Assertio Holdings. It also booked 559 million rupees as a provision to settle a class action lawsuit.Looking ahead, Zydus reaffirmed its fiscal 2027 outlook for strong double-digit revenue growth and an EBITDA margin of 24% or more.During an earnings call, Zydus CFO Tushar Shroff said the company expects 30 to 40 new US product launches in the current fiscal year.

BOM:532321
CoreWeave Second-Quarter Results Top Estimates Amid Cloud Computing Demand
US Markets

CoreWeave Second-Quarter Results Top Estimates Amid Cloud Computing Demand

CoreWeave (CRWV) reported better-than-expected second-quarter results as revenue more than doubled year on year amid strong demand for cloud computing.For the quarter ending June 30, CoreWeave's net loss widened to $1.14 per share from $0.60 a year earlier, compared with the consensus on FactSet that called for a per-share loss of $1.46. Revenue jumped to $2.58 billion from $1.21 billion, surpassing the average analyst estimate of $2.55 billion."CoreWeave reached an important inflection point this quarter as our scale began to translate into expanding operating leverage," Chief Executive Michael Intrator said. "Customer demand is accelerating, as enterprise adoption broadens and we continue to deepen our technology platform."The company's revenue backlog rose to about $104 billion at the end of the June, compared with $99.4 billion as of March 31.Shares of CoreWeave were up 9.4% in after-hours trading, and had gained 26% this year through Tuesday close.CoreWeave said Monday it closed a $2.6 billion loan facility to fund the expansion of its AI cloud platform, bringing the total amount of capital secured to more than $30 billion this year.BofA Securities expects stronger demand and pricing dynamics at CoreWeave in the second half than the first as "inference continues to proliferate."CoreWeave, which rents cloud-computing power for AI, is targeting 1.7 gigawatts of active power by the end of 2026, implying "a meaningful acceleration in capacity deployment over the next few quarters," BofA said last month.Key industry players have reported strong annual cloud growth rates for their most recent quarter, with Amazon.com's (AMZN) Amazon Web Services sales surging 37% to $42.23 billion, Microsoft's (MSFT) Azure soaring 43% and Alphabet's (GOOG, GOOGL) Google cloud revenue jumping 82%.

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Update: Equities Post Back-to-Back Declines Amid Hormuz Deal Doubts
US Markets

Update: Equities Post Back-to-Back Declines Amid Hormuz Deal Doubts

(Updates with market moves at the end of the day, and other changes, if any.)US stocks fell for a second straight session on Tuesday and oil prices extended their rally, as the reopening of the Strait of Hormuz appeared increasingly uncertain.The Nasdaq Composite fell 0.6% to 26,445.45. The S&P 500 and the Dow Jones Industrial Average each lost 0.3% to settle at 7,728.20 and 53,791.85, respectively. Most sectors sectors were in the red, led by communication services.West Texas Intermediate crude oil was up 1.6% at $83.41 a barrel in Tuesday late-afternoon trade, while Brent advanced 1.6% to $89.11. The US crude oil benchmark was on track for its fourth consecutive day of gains, while Brent is poised to stretch its rally to a fifth session.Secretary of Iran's Supreme National Security Council Mohsen Rezaei said Tuesday that the Strait of Hormuz will remain closed as long as the US does not accept Tehran's conditions, Reuters reported.Previously, Pakistani Defense Minister Khawaja Asif told Bloomberg News that the US and Iran were close to "some sort of an arrangement."Iran has reportedly laid out new terms for reopening the Strait of Hormuz, including a permanent end to the war against Tehran and its allies, as well as demanding full compensation for war damages. In response, US President Donald Trump on Monday demanded compensation for those he claimed were killed and wounded by Iran's attacks.Trump recently indicated to the media that he's prepared to exert greater economic pressure on Iran instead of launching another military attack."Uncertainty over a US-Iran deal to end the war and reopen the Strait of Hormuz has grown after Trump demanded compensation for victims of Iranian-backed conflicts, responding to Tehran's reparations demands," Saxo Bank said Tuesday in a report. "The tougher stance lowers chances of a near-term agreement and keeps markets wary, as Iran ties any Hormuz deal with Oman to a broader accord with the US and Trump opts for economic pressure over new strikes."A missile struck a Saudi commercial vessel while transiting the Bab al-Mandeb Strait, CNN reported Tuesday, citing Yemeni officials and shipping sources. That strait connects the Red Sea to the Gulf of Aden and Arabian Sea. It is an alternative route to the Strait of Hormuz.US Treasury yields were lower intraday, with the two-year rate down 1.5 basis points at 4.22% and the 10-year rate shedding less than a basis point to 4.69%.In company news, Nvidia (NVDA) said it partnered with six major financial institutions to raise more than $500 billion in third-party capital for artificial intelligence infrastructure.The tech bellwether signed memorandums of understanding with Apollo (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BN), Goldman Sachs (GS) and KKR (KKR) to establish independent compute financing platforms, it said late Monday.KKR shares jumped 6.9%, the best performer on the S&P 500. Apollo advanced 6.3%, the third-biggest gain on the index. Blackstone rose 3.9%, while BlackRock and Brookfield were also higher. Goldman and Nvidia ended little changed.AppLovin (APP) slumped 6%, the worst performer on the S&P 500, following a rating downgrade from BofA Securities.Sea (SE) reported stronger-than-expected second-quarter revenue as the Singapore-based company logged sharp annual gains in its e-commerce platform and the digital financial services business. Its US-listed shares jumped nearly 15%.In economic news, existing home sales in the US declined more than expected last month as rising prices and mortgage rates continued to weigh on homebuying activity, data from the National Association of Realtors showed.Spot gold fell 0.5% to $4,369.79 per troy ounce, while silver dropped 0.5% to $64.92.

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