Foxconn, the Taiwanese tech giant and the world’s largest contract electronics manufacturer, reported record third-quarter revenue thanks to strong demand for artificial intelligence (AI) servers.
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“The result exceeded the initial expectations” not only of the company itself, as Reuters writes, but also of the forecasts of market analysts: for example, LSEG SmartEstimate (the consultants were wrong by 1.79 trillion Taiwan dollars, that is i.e. approximately 55.4 billion dollars). .
In the third quarter, before the Christmas holidays, Taiwanese technology companies traditionally begin supplying smartphones, tablets and other electronics to large Western and American manufacturers such as Apple.
In September alone, the company’s total revenue already reached NT$733 billion (nearly $24 billion), a year-on-year increase of 10.9%. And at the end of the year the figure will only increase.
Revenue at Foxconn, Apple’s largest contractor in the region, rose 20.2% year-on-year in the third quarter to NT$1.85 trillion ($57.3 billion).
Such a significant increase in the company’s revenue was facilitated by the success of a specific division of Foxconn, which deals with network and cloud products. And the manufacturer’s analysts see the reason for the jump precisely in the greater demand for servers with artificial intelligence.
Foxconn expects record fourth-quarter performance, but does not provide specific numerical forecasts. You may hear them at the annual Tech Day on October 8-9 (the company typically announces new products or partnerships there) or at the financial reporting meeting on November 14.
Foxconn shares have risen 86% this year, significantly outpacing the overall Taiwan market gain of 24%. The company’s shares rose 3.7% on Friday ahead of the earnings release.
Author:
Ekaterina Alipova
Source: RB

I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.