Foxconn Reports Record Q3 Revenue Amid Strong AI Server Demand

TAIPEI (Reuters) – Taiwan’s Foxconn, the world’s largest contract electronics maker, exceeded expectations with its highest-ever revenue for the third quarter, driven by robust demand for artificial intelligence (AI) servers.

Revenue for Apple’s biggest iPhone assembler rose 20.2% year-on-year to T$1.85 trillion ($57.3 billion).

“The result exceeded the company’s original expectations of significant growth,” Foxconn stated on Saturday.

This revenue surpasses the T$1.79 trillion LSEG SmartEstimate that weighs more heavily on forecasts from consistently accurate analysts.

The demand for AI servers significantly boosted revenue growth in its cloud and networking products division, with Foxconn serving notable clients like AI chip firm Nvidia (NASDAQ:NVDA).

Although there was strong quarter-on-quarter growth in smart consumer electronics, including iPhones, the year-on-year performance remained flat, attributed to recent product launches.

The third quarter generally marks the start of Taiwan’s tech companies ramping up production to supply smartphones, tablets, and other electronics as they prepare for the Western markets’ year-end holiday season.

Total revenue in September alone surged to T$733 billion, up 10.9% year-on-year, marking the second-highest level recorded for the month.

“Entering the peak season in the second half of the year, we anticipate our operation to gradually gain momentum,” Foxconn stated regarding its outlook for the current quarter.

The company hinted that the fourth quarter is expected to align closely with current market forecasts but did not provide specific numerical projections.

Foxconn’s shares have skyrocketed by 86% this year, significantly outperforming the broader Taiwan market’s 24% rise. The shares rose 3.7% on Friday, defying a 0.4% fall in the benchmark index.

Foxconn will disclose its full third-quarter earnings on November 14. Additionally, the company has scheduled its annual Tech Day on October 8-9, where it usually announces new products or partnerships.

Note: $1 = 32.2900 Taiwan dollars.