Foxconn, the world’s largest contract electronics manufacturer and a major supplier to Nvidia and Apple, reported a 17% year-on-year rise in third-quarter profit, fueled by robust demand for artificial intelligence servers.
The Taiwanese company, officially known as Hon Hai Precision Industry, posted a net profit of NT$57.67 billion ($1.86 billion) for the quarter ended September, surpassing the NT$50.41 billion forecast by LSEG SmartEstimates. Revenue came in at NT$2.06 trillion ($66.29 billion), matching analyst expectations.
Foxconn attributed the strong performance to rapid growth in its “Cloud and Networking” division, which manufactures server racks and hardware for AI workloads. The company said AI-related production has become a key revenue driver as it expands beyond its traditional consumer electronics base.
Foxconn’s growing partnership with Nvidia has been central to that shift. The company now produces AI-optimized server infrastructure for major global data centers and expects momentum to continue through the second half of the year — typically its peak season — supported by rising orders for AI and information technology products.
However, Foxconn cautioned that geopolitical uncertainty, economic headwinds, and exchange rate fluctuations could affect near-term performance.
Ivan Lam, a senior analyst at Counterpoint Research, told CNBC that Foxconn’s “follow the cash” strategy — prioritizing high-growth AI and server businesses while trimming some consumer electronics output — is paying off. “Foxconn’s pivot toward server manufacturing is clearly paying off, even as it trades parts of its traditional electronics footprint for long-term momentum,” Lam said, adding that fourth-quarter results should “remain favorable.”
Beyond servers, Foxconn is also broadening its AI partnerships. The company is collaborating with Nvidia, Stellantis, and Uber to develop Level 4 autonomous vehicles, which can operate without human drivers. On November 6, Foxconn signed a memorandum of understanding with Mitsubishi Electric to jointly deliver energy-efficient AI data center solutions and explore new business models leveraging both companies’ technological strengths.
Foxconn said it expects continued quarterly growth through the end of the year, driven by strong AI-related shipments and expanding cloud infrastructure demand.
Featured image credits: Wikimedia Commons
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