Foxconn Shifts Focus to AI Servers as Q3 Earnings Surge 17%
Foxconn's third-quarter earnings soared to $66.2 billion, a 17% increase driven by booming demand for Nvidia's AI chips. The Taiwanese manufacturer, formally known as Hon Hai Precision Industry, reported net profits of NT$57.67 billion, significantly outpacing analyst expectations.
The company's pivot from consumer electronics to AI infrastructure marks a strategic shift. Server racks designed for complex AI workloads now outpace iPhones as Foxconn's primary growth driver. This transition reflects broader industry trends as tech giants race to build out AI data centers.
While maintaining cautious Optimism about future quarters, Foxconn flagged currency volatility and geopolitical risks as potential headwinds. Analysts note the company is leveraging its manufacturing scale to capture growing AI server demand, with Counterpoint's Ivan Lam observing Foxconn is 'following the cash' toward higher-margin AI contracts.
