Foxconn’s Q3 Profit Jumps 17% on Soaring AI Server Demand, Beating Expectations

Foxconn, officially known as Hon Hai Precision Industry, announced that its third-quarter net profit rose 17% year over year to NT$57.67 billion ($1.86 billion), exceeding analyst estimates of NT$50.41 billion. Revenue for the quarter came in at NT$2.06 trillion ($66.29 billion), in line with expectations, according to LSEG SmartEstimates.

The Taiwanese manufacturing giant, best known as Apple’s iPhone assembler, has been rapidly diversifying its business toward high-growth segments like artificial intelligence servers. Foxconn now supplies AI server racks for Nvidia, cementing its position in the global AI supply chain. The company said it expects steady quarterly growth through year-end, supported by stronger AI server shipments and rising demand for information and communications technology (ICT) products.

Foxconn’s “Cloud and Networking” division led the quarter’s performance, reporting robust year-on-year growth on the back of expanding AI infrastructure needs. Analysts say the company’s strategic pivot toward server manufacturing is proving highly effective. “Foxconn is clearly following the cash,” said Ivan Lam, senior analyst at Counterpoint Research, noting that the company is shifting focus from consumer electronics to AI-driven hardware for sustainable long-term gains.

Lam added that while Foxconn’s exposure to component price swings and logistics costs may weigh on margins, its fourth-quarter outlook remains favorable, buoyed by persistent AI demand.

Beyond data center hardware, Foxconn is expanding its footprint in autonomous vehicles, partnering with Nvidia, Stellantis, and Uber to develop Level 4 self-driving cars—vehicles that can operate without a safety driver.

The company is also investing in energy-efficient AI data center solutions. On November 6, Foxconn signed a memorandum of understanding with Mitsubishi Electric to jointly develop global AI data center systems and explore new business models that leverage both companies’ technological expertise.

While Foxconn remains optimistic about its AI growth trajectory, it cautioned that geopolitical tensions, global economic conditions, and currency fluctuations will continue to pose operational challenges. Still, its diversification into AI infrastructure, autonomous vehicles, and smart energy systems signals a long-term transformation beyond its traditional consumer electronics base.