Foxconn, a major Apple supplier, had a 14% increase in Q3 profit due to the AI growth

Taiwan's Foxconn (SS:601138), the world’s leading contract electronics manufacturer, announced a stronger-than-anticipated 14% increase in quarterly profit, driven by robust demand for artificial intelligence (AI) servers.

In a statement last month, the company reported a 20% year-over-year rise in third-quarter revenue, marking its highest revenue for that quarter, largely attributed to strong AI server sales.

Foxconn, Apple’s (NASDAQ) primary iPhone assembler, posted a net profit of T$49.3 billion ($1.5 billion) for the July-September period, based on Reuters' calculations. This represents a fifth consecutive quarter of profit growth, surpassing the T$46.3 billion consensus estimate by 14 analysts, as compiled by LSEG.

In addition, Foxconn revealed last month that it is constructing the world’s largest manufacturing facility for bundling Nvidia’s (NASDAQ) GB200 superchips in Mexico, a key element of Nvidia’s next-generation Blackwell family computing platform.

Highlighting Foxconn’s optimistic outlook, October sales achieved a record high for the month, and the company, officially known as Hon Hai (TW:2317) Precision Industry, anticipates year-over-year revenue growth for the fourth quarter. However, it does not provide specific financial guidance.

Foxconn’s stock has surged, doubling its value in 2024, outpacing the broader market's 28% gain, reflecting its optimistic projections for AI. Despite this, shares fell 1.4% on Thursday ahead of the earnings announcement.

Paraphrasing text from "Reuters" all rights reserved by the original author.