Foxconn’s Q3 Revenue Soars 20%, Driven by Strong Demand for AI Servers; 50% of Server Revenue to Come from AI in 2025

Foxconn, the world’s largest contract electronics manufacturer, reported a 14% rise in its quarterly profits for the July to September period. The company, which supplies major firms like Apple and Nvidia, expects robust growth in its AI server business next year. Foxconn maintains its forecast for “significant” sales growth in 2024 and anticipates AI servers will make up half of its total server revenue in 2025.

In addition to its strong performance, Foxconn announced it is building the world’s largest manufacturing facility in Mexico to assemble Nvidia’s next-generation GB200 superchips, an integral part of Nvidia’s Blackwell computing platform. October sales marked a record high for the company, and Foxconn expects its revenue to rise further in the fourth quarter compared to the same period last year.

Foxconn’s third-quarter revenue surged 20% year-on-year, largely due to the growing demand for AI servers. This growth helped the company achieve its highest-ever quarterly revenue, with its stock doubling in value this year, significantly outpacing the broader market’s 28% increase.