Foxconn October Sales Jump 46% on AI Server Demand

Hon Hai Precision Industry Co., commonly known as Foxconn, reported a 46% increase in October sales, with revenue reaching NT$1.31 trillion, or approximately $39.7 billion. This growth exceeded analyst expectations, which had projected an average sales increase of 30% for the quarter ending in December.

The revenue surge is primarily driven by strong demand for Nvidia Corp. servers used in global AI infrastructure and data center construction. While the company remains the primary iPhone manufacturer for Apple Inc., it faces increasing competition from Luxshare Precision Industry Co. as Apple works to diversify its supply chain.

Despite the significant revenue jump, the company's share price has risen only 2% since the start of the year. This stagnation is attributed to broader tech stock volatility and investor concerns regarding potential regulation and overcapacity within the AI sector.