Foxconn beats estimates with report third-quarter income on AI demand

Taiwan’s Foxconn, the world’s largest contract electronics maker, beat expectations to submit its highest-ever income for the third quarter on sturdy demand for synthetic intelligence servers.

Income for Apple’s  greatest iPhone assembler jumped 20.2% yr on yr to 1.85 trillion Taiwanese {dollars} ($57.3 billion).

“The end result exceeded the corporate’s authentic expectations of great progress,” Foxconn stated in a press release on Saturday.

It was additionally forward of a T$1.79 trillion LSEG SmartEstimate, which supplies higher weight to forecasts from analysts who’re extra persistently correct.

Sturdy AI server demand led to sturdy income progress for its cloud and networking merchandise division, stated Foxconn whose prospects embrace AI chip agency Nvidia NVDA.O.

For good client electronics, which incorporates iPhones, there was a powerful quarter-on-quarter progress because of new product launches, however its year-on-year efficiency was flat.

The third-quarter is historically when Taiwan’s tech firms begin racing to produce smartphones, tablets and different electronics to main distributors comparable to Apple for Western markets’ year-end vacation interval.

Whole income in September alone reached T$733 billion, up 10.9% yr on yr and the second-highest ever stage for the month.

“Coming into the height season within the second half of the yr, we anticipate our operation to step by step achieve momentum,” Foxconn stated of its outlook for the present quarter.

“The fourth quarter is predicted to be roughly in keeping with present market expectations,” it added, with out elaborating.

The corporate doesn’t present numerical forecasts.

Foxconn’s shares have jumped 86% up to now this yr, outperforming by far a 24% rise for the broader Taiwan market. They closed up 3.7% on Friday forward of the income information launch, bucking a 0.4% fall on the benchmark index.

The corporate will report its full third-quarter earnings on Nov. 14. It has scheduled its annual Tech Day on Oct. 8-9, an occasion the place Foxconn usually pronounces new merchandise or partnerships.