Foxconn Q3 Profit Jumps 34% on AI Demand

Hon Hai Precision Industry, known as Foxconn, reported a 34% increase in third-quarter net profit to T$77.5 billion ($2.35 billion), surpassing analyst expectations of T$69.6 billion. The company attributed this growth to strong demand for artificial intelligence, predicting that this trend will continue through next year.

As the primary iPhone assembler for Apple and the largest server maker for Nvidia, the company is diversifying its global manufacturing footprint. Foxconn is currently building AI server factories in Texas and Mexico and has shifted the production of a majority of U.S.-bound iPhones to India.

Looking ahead, the company forecasts high double digit growth for AI rack shipments in 2027. Despite the strong quarterly earnings beat, Foxconn shares have risen only 4% this year, underperforming the broader Taiwan index.