Foxconn reports strong growth driven by AI server demand

Foxconn, the world’s leading contract electronics manufacturer, is set to report a 7% year-on-year rise in third-quarter profit, driven by strong demand for AI servers. The company, best known for assembling Apple‘s iPhones, posted its highest-ever quarterly revenue, with a 20% increase from the previous year, attributed to booming AI-related sales. Foxconn’s net profit for July-September is expected to reach T$46.3 billion, marking the fifth consecutive quarter of profit growth.

In addition to its positive financial performance, Foxconn continues to expand its operations globally. It is building the world’s largest manufacturing facility in Mexico, dedicated to bundling Nvidia’s GB200 superchips for next-generation computing platforms. The company’s optimistic outlook is reflected in record-breaking sales for October and expectations of further revenue growth in the fourth quarter.

Foxconn‘s share price has surged more than 100% in 2024, significantly outperforming the broader market. The company will update its full-year outlook during its earnings call on Thursday, where it is expected to provide additional insights into the continued growth of its AI business.