Apple, Nvidia Supplier Foxconn Cuts 2025 Outlook On Tariff Uncertainty And Currency Pressure

Nvidia-supplier Foxconn lowered its full-year outlook on Wednesday, citing tariff uncertainty and a stronger Taiwan dollar–factors it said are clouding visibility into the second half of the year.

The world’s largest contract electronics manufacturer blamed "rapid changes in U.S. tariff policies" and currency headwinds for the shift in guidance.

The company assembles iPhones for Apple and servers for Nvidia, with production bases in China and Mexico, both targets of President Donald Trump’s trade agenda.

"Over the past month, rapid changes in U.S. tariff policies have considerably impacted the global supply chain. With recent exchange rate fluctuations adding to the uncertainty, we are taking a more cautious outlook for the near future," said Chairman Young Liu during the first-quarter (Q1) earnings call. 

He added that every one-unit rise in the Taiwan dollar against the U.S. dollar could reduce annual revenue by roughly 3%. The company does not provide numerical guidance.

The Taiwan dollar has appreciated around 8% year-to-date, driven in part by speculation earlier this month that exporters were accelerating conversion of U.S. dollar holdings ahead of potential policy changes. 

Despite the more guarded outlook, Foxconn reported first-quarter net profit of TW$42.12 billion ($1.39 billion), up 91% from a year earlier. Operating profit rose 27%. The company’s AI server revenue grew 50% and is expected to nearly double in the second quarter, both year over year and sequentially.

Apple’s stock edged 0.18% lower in morning trade on Wednesday, while Nvidia’s stock was up more than 2%. The latter’s price movement was bolstered by Bank of America’s (BofA) bullish take on the company’s deal with Humain, which is chaired by the Saudi Crown Prince and backed by Saudi Arabia’s sovereign wealth fund.

The brokerage hiked its price target on Nvidia’s shares to $160 from $150 and kept a ‘Buy’ rating. It said the deal for “Sovereign AI” could help address limited power availability for data centers in the U.S. and offset headwinds from restrictions on U.S. companies shipping to China. 

Exchange rate: TW$1 = $0.033

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