Foxconn Chairman Younger Liu delivers a speech throughout the Hon Hai Tech Day in Taipei on Oct. 18, 2023.
I-hwa Cheng | AFP | Getty Photographs
Foxconn, the world’s largest contract electronics maker, stated Wednesday that its third-quarter revenue jumped 17% from a 12 months earlier, pushed by progress in its synthetic intelligence server enterprise.
Here is how Foxconn did within the September quarter in contrast with LSEG SmartEstimates, that are weighted towards forecasts from analysts who’re extra constantly correct:
- Income: $2.06 trillion New Taiwan {dollars} ($66.29 billion) vs. NT$2.06 trillion anticipated
- Web revenue: NT$57.67 billion vs. NT$50.41 billion
Foxconn, formally often known as Hon Hai Precision Trade, is greatest often known as the world’s largest producer of Apple‘s iPhones, however has been shifting into different enterprise avenues, together with AI. The agency manufactures server racks designed for AI workloads and has grow to be a key associate to American AI chip darling Nvidia.
The corporate stated it expects operations within the second half of the 12 months — the normal peak season — to take care of steady quarterly progress, citing stronger AI server shipments and rising demand for info and communications know-how merchandise.
Nonetheless, Foxconn cautioned that international political and financial uncertainty, together with change charge fluctuations, would require continued shut monitoring.
Foxconn reported that its ‘Cloud and Networking’ phase noticed sturdy year-on-year progress, supported by demand for AI server racks.
Foxconn’s server manufacturing enterprise is at present in a powerful progress part, underpinned by strong demand, Ivan Lam, a senior analyst at Counterpoint Analysis, instructed CNBC.
The corporate is leveraging its dominance in contract manufacturing to safe each present and future orders, Lam stated, describing it as a transparent case of “observe the money” technique that includes sacrificing some shopper electronics orders.
He added that Foxconn’s pivot towards high-growth server manufacturing “is clearly paying off,” even because it trades elements of its shopper electronics footprint for longer-term momentum.
Whereas part worth volatility, foreign money swings, and logistics challenges can stress margins, Lam stated he expects Foxconn’s fourth-quarter outcomes to “stay favorable.”
The electronics contract producer additionally stated it’s partnering with Nvidia, Stellantis and Uber to construct so-called “Degree 4” autonomous automobiles, which does not require a security driver to be current.
Not too long ago, Foxconn signed a memorandum of understanding with Mitsubishi Electrical on Nov. 6 to collectively provide energy-efficient AI knowledge heart options globally. Apart from AI knowledge facilities, Foxconn and Mitsubishi Electrical plan to discover extra new enterprise fashions and options utilizing their mixed technological and data capabilities.
