TAIPEI: Taiwan's Foxconn, the world's largest contract electronics maker, reported a 34% rise in third-quarter profit on Thursday, beating analyst forecasts on continued strong demand for AI, which it predicted would drive growth this year and next.
Net profit for the July to September period for Nvidia's biggest server maker and Apple's top iPhone assembler was T$77.5 billion ($2.35 billion), versus an LSEG consensus estimate of T$69.6 billion and compared with T$57.7 billion a year earlier.
In an earnings release, Foxconn stuck to its previous forecast of "strong" growth for revenue this year and said it saw strong AI demand throughout this year and into next.
The company, which does not give numeric forecasts, said it predicted "high double-digit growth" in 2027 for AI rack shipments.
Foxconn, formally called Hon Hai Precision Industry, in October reported a 47% year-on-year jump in third-quarter revenue.
Most of the iPhones Foxconn makes for Apple are assembled in China, but it now produces the bulk of those sold in the United States in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia.
Foxconn has been looking to expand its footprint in electric vehicles as well.
The company will hold its earnings call later on Thursday in Taipei.
The company's shares have risen 4% so far this year, underperforming a 49% gain on the broader Taiwan index.
Foxconn shares closed 0.8% lower on Thursday ahead of the earnings release. The main index ended down 2.6%. - Reuters
