Foxconn posted its record-high revenue for 3Q, beating every estimate due to server demands from the artificial intelligence (AI) boom.
The world’s largest contract electronic manufacturer revenue surged 20.2% year on year to 1.85 trillion Taiwanese dollars ($57.3 billion), exceeding 1.79 trillion Taiwanese dollars estimated by LSEG SmartEstimate.
An increasing demand for AI servers contributed to Foxconn’s strong revenue growth from its cloud and networking products and services. Foxconn also benefited from a partnership with AI chip companies like Nvidia.
In the smart consumer electronics department, the quarter-on-quarter growth has been strengthened owing to new product launches, although year-on-year gain remains stagnant.
Taiwan tech industries considered the third quarter to be a golden opportunity, as many tech companies made a bid to supply smartphones, tablets, and other electronics to the Western market for its holiday sales period.
In September alone, the company’s revenue climbed to T$733 billion or a 10.9% year-on-year increase, the second-highest ever recorded for the month.
Foxconn remarked on the prospect of the current quarter that the company expected to gain momentum in the peak season of 2H24 steadily, and 4Q24 is likely to be along the current market forecast.
Foxconn this year so far has gained 86%, ahead of Taiwan’s market average of a 24% rise. The company closed up 3.7% on Friday earlier in the revenue data release, despite a 0.4% drop on the benchmark index.
