TAIPEI ― Taiwan’s Foxconn, the world’s largest contract electronics maker, said on Thursday it expected robust growth in its artificial intelligence server business next year after reporting a better-than-expected 14 percent rise in quarterly profit.
The firm, a key supplier to Apple and Nvidia, kept its 2024 guidance of “significant” sales growth and forecast AI servers would account for 50 percent of its total server revenue next year.
Foxconn said last month it was building the world’s largest manufacturing facility in Mexico for bundling Nvidia’s GB200 superchips, a key component of the US firm’s next-generation Blackwell family computing platform.
Underscoring Foxconn’s rosy prospects, October sales hit a record high for the month and the company, formally called Hon Hai Precision Industry, has said it expects fourth-quarter revenue to grow year-on-year.
It does not provide numerical guidance.
Net profit for July-September for Apple’s top iPhone assembler came in at NT$49.3 billion ($1.5 billion), according to Reuters calculations.
That marked a fifth consecutive quarter of profit growth and compared with a NT$46.3 billion LSEG consensus estimate of 14 analysts.
Last month, the company said third-quarter revenue jumped 20 percent from a year earlier, beating expectations to post its highest-ever revenue for that quarter on strong sales of AI servers.
Foxconn’s shares have doubled so far in 2024, beating the broader market’s 28 percent gain, buoyed by its confident outlook on AI.
They closed down 1.4 percent on Thursday ahead of the earnings release.
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