Taiwanese electronics giant Foxconn, the world’s leading contract manufacturer and a key Apple supplier, reported a surge in third-quarter profits, exceeding market expectations.
The company credits this impressive performance to the booming demand for artificial intelligence servers.
AI-powered growth: Foxconn’s profit surge
Foxconn’s net profit for the July-September period reached T$49.3 billion ($1.5 billion), a robust 14% increase year-over-year, based on Reuters calculations.
This marks the fifth consecutive quarter of profit growth for the company, significantly outperforming the T$46.3 billion consensus estimate from 14 analysts compiled by LSEG.
Record revenue and a Mexican mega-factory: Foxconn’s strategic moves
This profit surge follows the company’s announcement last month of a 20% year-over-year jump in third-quarter revenue, its highest ever for that period.
The company attributes this success to strong sales of AI servers.
Further solidifying its position in the AI arena, Foxconn revealed plans to construct the world’s largest manufacturing facility for bundling Nvidia’s GB200 superchips in Mexico.
These chips are a crucial component of Nvidia’s next-generation Blackwell computing platform.
October sales set record: continued growth anticipated
Foxconn’s positive momentum continued into October, with sales reaching a record high for the month.
The company, formally known as Hon Hai Precision Industry, expects this upward trajectory to persist, forecasting year-over-year revenue growth in the fourth quarter, though it refrained from providing specific numerical guidance.
Driven by its optimistic outlook on the AI sector, Foxconn’s shares have doubled in value in 2024, significantly outpacing the broader market’s 28% gain.
Despite this impressive run, the company’s shares closed down 1.4% on Thursday, prior to the earnings release.
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