Foxconn sees over 11% year-on-year rise in Q3 revenue to $67.8 billion, driven by strong AI infrastructure demand

The rise in demand for AI infrastructure is fueling the growth of companies involved in the AI supply chain, and the Taiwanese electronics giant Foxconn has benefited from the surge, reporting an 11% year-on-year rise in its revenue for the third ￰0￱ Hai Precision Industry Co., better known as Foxconn, reported a record third-quarter revenue fueled by the booming global demand for artificial intelligence (AI) infrastructure. Foxconn, which builds servers for Nvidia ￰1￱ assembles Apple’s iPhones , posted an 11% year-on-year increase in sales to NT$2.06 trillion for the three months ending ￰2￱ figure came in slightly below the LSEG SmartEstimate of NT$2.134 trillion, but Foxconn described the result as “better than expected,” considering the potential issues from exchange rate movements and geopolitical ￰3￱ a ￰4￱ basis, Foxconn’s revenue grew 16.1% year-on-year, to $67.8 ￰5￱ Taiwan dollar also rose by 8% against the American dollar this ￰6￱ infrastructure demand is fueling record growth Foxconn’s performance shows how the global AI infrastructure boom continues to increase demand across the semiconductor and hardware supply ￰7￱ investment has surged into the companies enabling AI’s expansion, including chipmakers and networking firms, to server manufacturers like Hon Hai, which play a crucial role in housing and powering high-performance AI ￰8￱ company said its cloud and networking products division delivered the strongest growth, due to high orders for AI ￰9￱ contrast, revenue from its smart consumer electronics division, which includes iPhone assembly, saw a slight decline due to unfavorable exchange rates and a maturing smartphone ￰10￱ revenue in September alone rose 14.2% year-on-year to NT$837.1 billion, marking the highest monthly total ever for the ￰11￱ expects to maintain sequential quarterly growth into the fourth quarter as AI server shipments increase and seasonal consumer demand strengthens ahead of the year-end holidays in Western ￰12￱ notes geopolitical risks and diversification efforts Despite the record figures , Foxconn cited the need for “continued close monitoring” of global political and economic developments as well as exchange rate volatility, both of which have intensified due to trade tensions between the United States and ￰13￱ this year, Foxconn cut its full-year revenue guidance, warning that the escalating trade frictions could disrupt supply chains and customer ￰14￱ company has been actively diversifying its manufacturing process to reduce its reliance on China , where the majority of its production facilities ￰15￱ renewed trade war threat gained momentum in May when the ￰16￱ Donald Trump announced plans for a 100% tariff on semiconductor ￰17￱ offered exemptions for firms that shift production to the U.

S. Foxconn, backed by Nvidia and Apple, has been expanding its American operations, including AI server production facilities in Wisconsin and ￰18￱ is expected to benefit significantly from OpenAI’s $400 billion “Stargate” data center project, developed in collaboration with Oracle ￰19￱ SoftBank Group ￰20￱ project includes plans for five massive data centers across the U. S., highlighting the scale of investment pouring into the ￰21￱ investors have expressed concern that valuations across the AI supply chain may be running ahead of actual earnings ￰22￱ so, Foxconn’s stock has outperformed the Taiwan market, gaining 23% year-to-date compared to the 16% rise in the benchmark TAIEX ￰23￱ closed up 0.44% on Friday ahead of the revenue ￰24￱ company is set to report its detailed third-quarter earnings on November 12, but did not provide a prediction for the ￰25￱ your strategy with mentorship + daily ideas - 30 days free access to our trading program