Foxconn’s AI Bonanza Continues as it Posts Record Q3 Revenue

Foxconn posted its its highest-ever third quarter revenue as demand for artificial intelligence (AI) servers continues to soar.

Revenue for Apple’s biggest iPhone assembler jumped 20.2% year on year to $57.3 billion. It was also ahead of a $56 billion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate.

“The result exceeded the company’s original expectations of significant growth,” Foxconn said in a statement on Saturday.

Strong AI server demand led to robust revenue growth for its cloud and networking products division, said Foxconn whose customers include AI chip firm Nvidia.

For smart consumer electronics, which includes iPhones, there was a strong quarter-on-quarter growth thanks to new product launches, but its year-on-year performance was flat.

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The third-quarter is traditionally when Taiwan’s tech companies start racing to supply smartphones, tablets and other electronics to major vendors such as Apple for Western markets’ year-end holiday period.

Total revenue in September alone reached $22.79 billion, up 10.9% year on year and the second-highest ever level for the month.

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

“The fourth quarter is expected to be roughly in line with current market expectations,” it added, without elaborating.

The company does not provide numerical forecasts.

Foxconn’s shares have jumped 86% so far this year, outperforming by far a 24% rise for the broader Taiwan market. They closed up 3.7% on Friday ahead of the revenue data release, bucking a 0.4% fall on the benchmark index.

The company will report its full third-quarter earnings on Nov. 14. It has scheduled its annual Tech Day on October 8-9, an event where Foxconn normally announces new products or partnerships.

Reuters with additional editing by Sean O’Meara

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.