Foxconn Reports 7% Profit Increase In Q3

Foxconn, the contract electronics maker, is set to report a 7 per cent year-on-year increase in third-quarter profit, driven by strong demand for artificial intelligence (AI) servers. The company, which assembles Apple’s iPhones, is poised to report a net profit of USD 1.43 billion for the July-September period, marking its fifth consecutive quarter of profit growth.

Foxconn's third-quarter revenue surged 20 per cent year-on-year, reaching record levels driven by sales of AI servers. The company has also been making strides in the AI sector, including the development of the world’s largest facility for assembling Nvidia’s GB200 superchips in Mexico. These chips are a crucial component of Nvidia’s next-generation Blackwell family of computing platforms, further cementing Foxconn’s role in the rapidly growing AI market.

Along with its AI success, Foxconn reported a record high in sales for October, and its optimistic outlook for the fourth quarter suggests continued revenue growth. Analysts estimate that Foxconn’s net profit for the third quarter will stand at USD 1.43 billion, marking a 7.4 per cent increase compared to the same period last year. This represents the fifth consecutive quarter of profit growth.

Foxconn’s shares have surged by more than 100 per cent in 2024, significantly outperforming the broader market’s 28 per cent gain. The company’s strong performance is largely attributed to its strategic expansion in AI technologies.