Foxconn has reported record third-quarter revenue, surpassing market estimates. The company’s revenue surged 20% year-over-year to $57.3 billion. The growth was mainly driven by strong demand for AI-related products.
Foxconn’s consumer electronics division revenue remained flat compared to the previous year. The company expects its fourth-quarter results to match current market expectations. This suggests continued strong performance.
Foxconn’s record revenue shows its ability to adapt and invest in high-growth technology sectors. This positions the company well in the changing tech landscape. Looking ahead, Foxconn expects positive growth in the fourth quarter of 2024.
This will be driven by Apple’s iPhone 16 and high demand for AI servers. As a key supplier for many technology companies, Foxconn’s focus on AI servers is expected to contribute to its financial performance. This reflects growing industry demand for advanced computing solutions.
Foxconn’s Q3 revenue growth details
In the third quarter, Foxconn’s revenue jumped 20.2% year-over-year to 1.85 trillion New Taiwan dollars (about $579 billion). This beat Bloomberg analysts’ expectations of 1.78 trillion New Taiwan dollars.
The company said its third-quarter sales set a new record for the period and were higher than its own projections. However, specific forecast figures were not shared. Analysts attribute this performance to the growth of Foxconn’s server supply business, which includes NVIDIA AI chips.
The company expects revenue to keep growing through the rest of the year. Since the start of 2024, Foxconn’s stock price has climbed over 85%. The company’s future growth is expected to be driven by increasing AI adoption and steady iPhone demand.
Foxconn’s vertical integration and global presence put it in a good position as AI servers become more complex and localized production needs grow. As GPU supply issues get better and new models like Blackwell GB200 are launched, more upside potential is expected in the coming quarters. While demand for smartphones and personal computers is recovering, Foxconn’s electric vehicle contract manufacturing business may underperform due to slowing global demand.
This will likely contribute minimally to sales.
