Post by : Badri Ariffin

Foxconn, Taiwan's premier contract electronics manufacturer, reported a significant 17% increase in its third-quarter profits, propelled by rising demand for artificial intelligence (AI) servers. The net profit for the July to September period reached T$57.67 billion ($1.89 billion), exceeding market forecasts which expected T$50.4 billion.

This profit surge stems from a consistent demand for AI infrastructure, as Foxconn serves as the largest assembler of Nvidia's servers and tops the list for Apple’s iPhone production. In a prior announcement, Foxconn revealed revenue figures for the quarter that also surpassed expectations, underlining the growing relevance of AI technology within its offerings.

Looking forward, Foxconn anticipates continued revenue growth in the upcoming fourth quarter, with AI server sales projected to rise further over prior months. The company has reaffirmed its targets for yearly revenue increases, consistent with guidance provided in August, although it lacked specific numerical forecasts.

Apple remains a vital client, manufacturing most iPhones in China, while a significant share of those sold in the U.S. are now produced in India. Additionally, Foxconn is advancing its AI server manufacturing capabilities with new facilities being set up in Mexico and Texas, indicating a strategic pivot towards AI-centric production.

In areas beyond electronics, Foxconn is eyeing the electric vehicle (EV) market. Although it has faced obstacles, such as selling its previous Lordstown, Ohio factory for $375 million, the company continues to view the EV sector as a pivotal growth area for the future.

Stocks in Foxconn have appreciated by 36% this year, significantly outperforming the Taiwan index, which has grown by 21%. Ahead of its earnings report, the stock climbed 1.8%, reflecting positive investor sentiment regarding AI-driven growth and strategic initiatives.

#Global News #Share Market