2024-10-07 20:59:28
Taiwan‘s Foxconn Technology Group reported record revenue for the third quarter, beating analysts’ expectations with a significant year-over-year increase attributed to growing demand for artificial intelligence (AI) servers. The company, known as Apple Inc.’s (NASDAQ:) main iPhone assembler, reported a 20.2% increase in revenue to 1.85 trillion Taiwan dollars (57.3 billion euros).
The revenue data released Saturday beat the company’s initial projections of substantial growth and also surpassed LSEG’s SmartEstimate of NT$1.79 trillion, which prioritizes forecasts from historically accurate analysts.
Foxconn’s impressive financial performance was particularly strong in its cloud and network products division, driven by strong demand for AI servers. This division serves major customers, including the AI chip maker Nvidia Corp (NASDAQ:). Despite a flat year-over-year result for the smart consumer electronics segment, which includes iPhone production, the company reported substantial growth from the previous quarter thanks to recent product launches.
The third quarter marks a busy period for Taiwan’s technology sector as companies ramp up production to meet demand from Western markets in preparation for the holiday season. Foxconn’s September revenue alone reached NT$733 billion, a 10.9% increase from the same month last year and the second-highest figure on record for September.
As the company enters what is traditionally its peak season in the second half of the year, Foxconn expects a gradual increase in operational momentum. The company expects the fourth quarter to be in line with current market expectations, although it did not provide specific numerical guidance.
Ahead of the revenue announcement, Foxconn shares rallied significantly, closing up 3.7% on Friday, a notable performance compared to a 0.4% decline in Taiwan’s benchmark index. Overall, Foxconn shares have risen 86% this year, far outpacing the broader Taiwan market’s 24% growth.
Reuters contributed to this article.
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