Major Apple supplier Foxconn’s Q3 profit up 14% on AI boom

TAIPEI (Reuters) – Taiwan’s Foxconn (SS:), the world’s largest contract electronics maker, reported on Thursday a better-than-expected 14% rise in quarterly profit underpinned by robust demand for artificial intelligence servers.

Last month, the company said third-quarter revenue jumped 20% from a year earlier, beating expectations to post its highest-ever revenue for that quarter on strong sales of AI servers.

Net profit for July-September for Apple (NASDAQ:)’s top iPhone assembler came in at T$49.3 billion ($1.5 billion), according to Reuters calculations.

That marked a fifth consecutive quarter of profit growth and compared with a T$46.3 billion LSEG consensus estimate of 14 analysts.

Foxconn said last month it was building in Mexico the world’s largest manufacturing facility for bundling Nvidia (NASDAQ:)’s GB200 superchips, a key component of the U.S. firm’s next-generation Blackwell family computing platform.

Underscoring Foxconn’s rosy prospects, October sales hit a record high for the month and the company, formally called Hon Hai (TW:) Precision Industry, has said it expects fourth-quarter revenue to grow year-on-year.

It does not provide numerical guidance.

Foxconn’s shares have doubled so far in 2024, beating the broader market’s 28% gain, buoyed by its confident outlook on AI.

They closed down 1.4% on Thursday ahead of the earnings release.

($1 = 32.4140 Taiwan dollars)