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Foxconn Profit Beats Forecasts as AI Servers Become Its Top Business

Management signals further Q4 growth driven by sustained demand for AI hardware.

Overview

  • Third-quarter net profit rose 17% to T$57.67 billion ($1.89 billion), topping the T$50.4 billion consensus.
  • Cloud and networking, which includes AI servers, generated 42% of Q3 sales and surpassed smart consumer electronics for a second straight quarter.
  • The company expects significant year-on-year revenue growth in Q4 with AI server revenue increasing quarter on quarter, while providing no numerical guidance and flagging macro and currency risks.
  • Foxconn is building new factories in Mexico and Texas to produce AI servers for Nvidia as it scales data-center hardware capacity.
  • Chairman Young Liu expressed confidence in next year’s AI market and teased an OpenAI-related announcement at next week’s tech day, and the stock is up about 36% this year.