Foxconn’s Q3 Profit Surges 17% on Strong AI Server and iPhone Demand

Taiwan-based Foxconn, officially known as Hon Hai Precision Industry, reported a 17% year-on-year rise in third-quarter profit, driven by robust global demand for artificial intelligence (AI) servers and steady iPhone production. The world’s largest contract electronics manufacturer, which assembles iPhones for Apple and builds servers for Nvidia, posted a net profit of T$57.67 billion ($1.89 billion) for the July–September period—surpassing analysts’ expectations of T$50.4 billion, according to LSEG data.

The tech manufacturing giant continues to benefit from the growing AI boom, with its third-quarter revenue also beating forecasts due to strong sales of AI-related products. In its earnings report, Foxconn projected significant year-on-year revenue growth for the fourth quarter, supported by increasing demand for AI servers. The company expects its full-year revenue to see solid growth, consistent with earlier guidance issued in August, though it did not provide specific numerical targets.

Foxconn remains Apple’s top iPhone assembler, with most production still based in China. However, a substantial portion of iPhones sold in the U.S. are now manufactured in India as part of Foxconn’s diversification strategy. To meet surging AI hardware demand, the company is also building new factories in Mexico and Texas to supply Nvidia’s server needs.

Beyond electronics, Foxconn is expanding into the electric vehicle (EV) market—an area it views as a key driver of future growth. Progress has been mixed, as seen in its decision to sell a former car factory in Lordstown, Ohio, for $375 million in August 2024.

Foxconn shares have soared 36% so far this year, outperforming Taiwan’s benchmark index, which rose 21%. Ahead of its earnings call in Taipei, the company’s stock closed up 1.8%, reflecting investor optimism about its AI and EV growth prospects.