Overview
- Foxconn reported third-quarter net profit of NT$77.5 billion, a 34% year-on-year rise that beat a Bloomberg analyst consensus of NT$70.3 billion.
- The company said revenue rose 39% to NT$7.7 trillion as sales of cloud and networking gear, including AI servers, powered its results.
- Foxconn told investors it expects AI server rack shipments to grow by a high double-digit percentage in the fourth quarter and that full-year 2026 rack shipments should more than double from 2025.
- Short-term investor confidence has been dented by US political moves that could tighten AI rules and by recent reputational headlines about Nvidia’s leadership that have pressured partner stocks.
- Longer-term risks include local and environmental pushback on data-centre builds because they use large amounts of electricity and water, a factor that could slow future server demand even as Foxconn shifts away from low-margin phone assembly.