Hon Hai Group's headquarters are in Taipei, Taiwan.
Sing Shu Yi | norphoto | Getty Images
Taiwan Foxconnthe world's largest contract electronics manufacturer, beat expectations to record its highest revenue ever for the third quarter thanks to strong demand for its AI servers.
The revenues of the largest iPhone assembler jumped 20.2% year-on-year to 1.85 trillion Taiwan dollars ($57.3 billion).
“The result exceeded the company's original expectations of significant growth,” Foxconn said in a statement on Saturday.
It was also ahead of the TWD1.79 trillion LSEG SmartEstimate, which gives more weight to consistently more accurate analyst forecasts.
Foxconn, whose clients include AI chipmaker Nvidia NVDA.O, said strong demand for AI servers led to strong revenue growth in its cloud and networking products division.
For smart consumer electronics, which includes iPhones, there was strong growth quarter-on-quarter thanks to new product launches, but its performance year-on-year was flat.
The third quarter is typically when Taiwanese technology companies begin the race to supply smartphones, tablets and other electronic devices to major vendors like Apple over the year-end holiday period in Western markets.
Total revenue in September alone reached NT$733 billion, up 10.9% year-on-year and the second highest level ever for the month.
“As we enter the peak season in the second half of the year, we expect our operations to gradually gain momentum,” Foxconn said of its expectations for the current quarter.
“The fourth quarter is expected to be roughly in line with current market expectations,” she added, without elaborating.
The company does not provide numerical forecasts.
Foxconn shares have jumped 86% so far this year, far outpacing a 24% rise in the broader Taiwan market. Shares closed up 3.7% on Friday before the revenue data was released, outpacing the benchmark index's 0.4% decline.
The company will report its full third-quarter earnings on November 14. It has scheduled its annual Technology Day for October 8-9, an event where Foxconn typically announces new products or partnerships.
