Foxconn’s Profit Jumps 17% as AI Server Demand Fuels Strong Quarter

Foxconn (Hon Hai Precision Industry Co., Ltd.) reported a 17% year-over-year increase in third-quarter profit, buoyed by surging demand for artificial intelligence servers and robust performance in its cloud and networking business.

The world’s largest contract electronics manufacturer posted net profit of NT$57.67 billion ($1.86 billion) for the quarter ended September, beating LSEG SmartEstimate expectations of NT$50.41 billion. Revenue reached NT$2.06 trillion ($66.3 billion), roughly in line with forecasts. Foxconn said it expects operations to maintain “continuous quarterly growth” through the second half of the year… traditionally its busiest period… driven by AI server shipments and rising demand for information and communications technology products.

“The strong AI tailwind continues to reshape Foxconn’s business mix,” said Ivan Lam, senior analyst at Counterpoint Research. “The company is clearly following the cash, shifting capacity from consumer electronics to high-growth AI servers.”

Foxconn, long known as Apple’s primary iPhone manufacturer, has aggressively diversified into AI infrastructure manufacturing. Its cloud and networking division, which includes AI servers and data center hardware, now accounts for 42% of total revenue… surpassing smart consumer electronics as its largest business line for the second consecutive quarter.

The company reported cumulative AI server revenue of NT$1 trillion ($32.2 billion) through September, underscoring its growing importance as a manufacturing partner to Nvidia. Nvidia shares edged higher following Foxconn’s results, as investors viewed the data as evidence that global GPU demand remains strong ahead of Nvidia’s own earnings report.

Foxconn is broadening its reach across the AI and automation ecosystem through several key partnerships. For instance, it is collaborating with Nvidia, Stellantis, and Uber on Level 4 autonomous vehicles, capable of operating without a safety driver. Additionally, on November 6, Foxconn signed a memorandum of understanding with Mitsubishi Electric to co-develop energy-efficient AI data center solutions and explore joint opportunities in industrial automation and smart manufacturing.

These partnerships align with Foxconn’s push to reposition itself as a platform company spanning electric vehicles, robotics, and high-performance computing infrastructure.Despite upbeat earnings, Foxconn warned that global political uncertainty, currency fluctuations, and component price volatility could pressure margins in coming quarters. Still, analysts expect strong momentum into year-end as AI-related demand continues to outweigh weakness in traditional consumer electronics.

“Even as it trades off some smartphone business, Foxconn’s pivot to AI infrastructure is paying off,” Lam said. “Fourth-quarter results should remain favorable.”

About Hon Hai Precision Industry Co., Ltd. (Foxconn)

Hon Hai Precision Industry Co., Ltd. (TWSE: 2317), trading internationally as Foxconn, is the world’s largest contract electronics manufacturer and a major supplier to global technology brands including Apple, Nvidia, and Sony. Founded in 1974 and headquartered in Tucheng, Taiwan, the company operates in over 20 countries, producing consumer electronics, components, and cloud computing infrastructure. Foxconn is expanding its portfolio into electric vehicles, artificial intelligence, and semiconductor manufacturing to drive long-term growth.

At the time of publishing, Stocks.News holds positions in Uber, and Apple as mentioned in the article.