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AI Boom Powers Chip and Server Suppliers as Solar and Consumer Hardware Stumble in Q1

NXP’s beat and higher Q2 outlook echo Chinese gains and signal durable demand for compute gear.

Overview

  • - NXP reported Q1 revenue of $3.181 billion with GAAP net profit up 129% to $1.122 billion, and guided Q2 sales to $3.35–$3.55 billion, which points to broad strength in automotive, industrial, and compute chips.
  • - Foxconn Industrial Internet said revenue rose 56% to 2510.78 billion yuan and net profit doubled to 105.95 billion yuan, driven by AI hardware with GPU server cabinets up 3.8 times and 800G switches up 1.6 times.
  • - Longsys posted revenue of 99.09 billion yuan and net profit of 38.62 billion yuan, a 2,644% jump, helped by UFS 4.1 phone storage ramp, custom in‑car AI storage, and renewed long‑term supply deals, though operating cash flow turned negative.
  • - Montage Technology’s net profit rose 61% to 847 million yuan as sales of DDR5 RCD chips and new interconnect parts such as PCIe retimers and CXL controllers grew with AI server deployments.
  • - The split was stark, as Longi Green Energy lost 1.9199 billion yuan on an 18% revenue drop and BYD Electronics’ profit fell 96% to 27.83 million yuan due to currency losses and a weaker product mix.