Foxconn quarterly profit hits record on AI servers

Foxconn reported record third-quarter profit on Thursday as demand for AI servers boosted the Taiwanese electronics manufacturer.

The company said net profit for July to September reached NT$77.5 billion, or US$2.4 billion, up 34% from a year earlier. Revenue rose 39% to NT$7.7 trillion.

The profit figure was above the NT$70.3 billion estimate in a Bloomberg survey of analysts.

Chief Financial Officer David Huang said Foxconn's third-quarter revenue, operating income, net income and earnings per share all reached record quarterly highs. Chairman Young Liu said AI servers had become the company's most important growth driver.

Foxconn, the world's largest electronics contract manufacturer, has expanded beyond assembling iPhones into AI servers for Nvidia, as well as electric vehicles and robots.

Liu said Foxconn remained confident about next year's operations and expected growth to continue. He also warned that bottlenecks in AI and consumer electronics supply chains could persist because demand is expected to outpace supply.

He said Foxconn did not expect much short-term impact on data centre and computing demand from the US midterm elections and industry shifts, but said policy changes and recent market variables would need to be monitored.