Foxconn Chairman Young Liu gives a speech at Honghi Tech Day in Taipei on October 18, 2023.
Chen Yihua | AFP | Getty Images
Foxconn, the world’s largest contract electronics maker, said Wednesday that third-quarter profit rose 17% from a year earlier, driven by growth in its artificial intelligence server business.
Here’s how to do it foxconn Compared to LSEG SmartEstimates, it emphasizes more consistently accurate analyst forecasts.
Revenue: NT$2.06 trillion ($66.29 billion) vs. expected NT$2.60 trillion Net income: NT$57.67 billion vs. NT$50.41 billion
Foxconn, officially known as Hon Hai Precision Industry, is the world’s largest appledeveloped the iPhone, but is moving into other ways of doing business, including AI. The company makes server racks designed for AI workloads and is a key partner for America’s AI chip darling Nvidia.
The company said it expects its business to maintain continued quarterly growth in the second half of this year (traditional peak season), citing increased shipments of AI servers and rising demand for information and communication technology products.
However, Foxconn cautioned that exchange rate fluctuations, as well as global political and economic uncertainties, must continue to be closely monitored.
Foxconn reported that its “Cloud and Networking” division saw strong year-over-year growth, driven by demand for AI server racks.
Foxconn’s server manufacturing business is currently in a strong growth phase, supported by strong demand, Ivan Lamb, senior analyst at Counterpoint Research, told CNBC.
Lam said the company is leveraging its advantages in contract manufacturing to secure current and future orders, describing it as a clear case of a “chasing the cash” strategy that involves sacrificing some of its consumer electronics orders.
He added that Foxconn’s pivot to high-growth server manufacturing is “clearly paying off” even as it trades some of its consumer electronics footprint for long-term momentum.
Lam said he expected Foxconn’s fourth-quarter results to “remain strong”, although component price fluctuations, currency fluctuations and logistics challenges could weigh on margins.
The electronics contract manufacturer also said it is partnering with Nvidia. Stellantis and Uber The goal is to manufacture so-called “Level 4” self-driving cars that do not require a safety driver.
Recently, Foxconn signed a memorandum of understanding with Mitsubishi Electric on November 6th to jointly supply energy-efficient AI data center solutions to the world. In addition to AI data centers, Foxconn and Mitsubishi Electric We plan to combine our technical and knowledge capabilities to explore further new business models and solutions.
