Foxconn Profit Soars 17% on AI Server Demand Boom

Taiwan’s Foxconn, the world’s leading contract electronics maker, posted a robust 17% jump in third-quarter profits, fueled by booming demand for artificial intelligence (AI) servers. The company’s net profit for July to September reached T$57.67 billion ($1.89 billion), surpassing analysts’ expectations of T$50.4 billion.

The earnings surge comes on the back of sustained demand for AI infrastructure, with Nvidia’s biggest server assembler and Apple’s top iPhone manufacturer riding the technology growth wave. Last month, Foxconn also reported higher-than-expected revenue for the quarter, highlighting the growing importance of AI products in its portfolio.

Looking ahead, the company expects revenue to continue climbing in the fourth quarter, with AI server sales set to increase further compared to the previous quarter. Foxconn has also reaffirmed its full-year revenue growth targets, in line with guidance shared in August, although it has not provided specific numerical projections.

Apple remains a key client, with most iPhones assembled in China, while a majority of those sold in the U.S. are now produced in India. In addition, Foxconn is expanding its AI server production with new factories in Mexico and Texas, signaling a long-term strategic shift toward AI-focused manufacturing.

Beyond electronics, Foxconn has been exploring the electric vehicle (EV) sector. While the journey has faced challenges, including the sale of its former Lordstown, Ohio, car factory for $375 million, the company continues to see EVs as a major future growth opportunity.

Foxconn shares have surged 36% this year, outpacing the broader Taiwan index, which rose 21%. The stock closed 1.8% higher ahead of the earnings release, reflecting investor optimism around AI-driven growth and strategic expansions.