Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, reported a 17% jump in third-quarter profit on Wednesday, beating market expectations on the back of robust demand for artificial intelligence (AI) servers.
Net profit for the July–September period reached T$57.67 billion ($1.89 billion), above the T$50.4 billion average forecast compiled by LSEG.
The company, formally known as Hon Hai Precision Industry, credited sustained strength in AI products for the upbeat results.
Foxconn, best known as Apple’s main iPhone assembler and Nvidia’s largest server manufacturer, has benefited from a global surge in demand for data centre infrastructure powering generative AI systems.
The company said fourth-quarter revenue should post “significant” year-on-year growth, led by continued expansion in AI-related sales.
Fourth-quarter outlook remains strong
Foxconn reaffirmed its guidance for full-year revenue to post “significant” year-on-year growth, consistent with forecasts issued in August.
The company did not provide numerical targets but noted that AI server revenue is expected to increase quarter-on-quarter.
The company’s performance reflects its growing role in the AI supply chain, with new production capacity under development in Mexico and Texas to serve Nvidia.
Most of Foxconn’s iPhone assembly still takes place in China, though the bulk of those sold in the United States are now manufactured in India.
Foxconn’s shares have climbed 36% this year, outperforming the broader Taiwan Stock Exchange index, which has gained 21%.
The stock rose 1.8% on Wednesday ahead of the earnings release.
Expanding AI investments and partnerships
Foxconn is accelerating its investments in AI infrastructure.
Its board has approved plans to spend up to NT$42 billion ($1.37 billion) from December 2025 through December 2026 to procure equipment for a supercomputing centre and AI compute cluster.
The investment will be funded internally and is aimed at expanding its cloud compute service platform.
Earlier this year, the company announced plans to build an AI centre in Taiwan with Nvidia, capable of 100 megawatts of power.
It has also partnered with Japan’s SoftBank to produce data centre equipment at its former electric vehicle (EV) plant in Ohio, part of the so-called “Stargate” initiative to strengthen US AI infrastructure.
Chairman Young Liu said last month that he met OpenAI CEO Sam Altman to explore potential collaboration, a development that sent Foxconn’s shares up nearly 8% as investors welcomed the prospect of deeper involvement in the AI ecosystem.
Diversifying beyond iPhones
While Foxconn’s core business remains iPhone assembly, it continues to diversify into electric vehicles and AI-related products.
Its EV push has faced challenges — the company sold its former Lordstown, Ohio, factory for $375 million in August — but executives say AI infrastructure now represents its most promising growth avenue.
The company will hold its earnings call later on Wednesday in Taipei, where it is expected to elaborate on its fourth-quarter and 2025 outlook.
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