Taiwan’s Foxconn, the world’s largest contract electronics maker, has reported its highest-ever third-quarter revenue, driven by strong demand for artificial intelligence (AI) servers. The company, which is the primary assembler of Apple’s iPhones, saw its revenue soar by 20.2% year-on-year, reaching 1.85 trillion Taiwanese dollars (T$) ($57.3 billion), surpassing market expectations.
Foxconn’s revenue growth beat the T$1.79 trillion estimate from LSEG SmartEstimate, which weights forecasts from consistently accurate analysts. In its statement, Foxconn highlighted that the results exceeded its own expectations of significant growth.
Strong AI Server Demand Fuels Growth
The significant revenue surge in Foxconn’s cloud and networking products division was largely attributed to growing demand for AI servers, as companies increasingly invest in AI-driven technologies. Foxconn’s client roster includes Nvidia, a leading player in the AI chip market, whose booming demand for servers has contributed to Foxconn’s stellar performance.
Although the company’s smart consumer electronics division, which includes products like iPhones, saw quarter-on-quarter growth due to new product releases, its year-on-year performance remained flat.
Q3 and September Revenue Surge
The third quarter is traditionally a strong period for Taiwan’s technology companies, as they ramp up production of electronics such as smartphones and tablets for major clients like Apple ahead of the year-end holiday season in Western markets. In September alone, Foxconn’s total revenue reached T$733 billion, a 10.9% increase year-on-year, marking the second-highest revenue ever for the month.
Foxconn is optimistic about the fourth quarter, expecting to maintain this momentum. The company hinted that its performance will align with current market expectations but did not provide specific forecasts.
Share Performance and Upcoming Events
Foxconn’s shares have surged by 86% so far this year, far outpacing the broader Taiwan market, which has risen 24%. On Friday, the company’s shares climbed 3.7% ahead of the release of its revenue data, defying the benchmark index’s 0.4% decline.
Foxconn will announce its full third-quarter earnings on November 14, with further insights expected during its annual Tech Day event on October 8-9, where the company typically unveils new products and partnerships.