Foxconn Profit Tops Estimates Amid Robust AI Server Business

By Sherry Qin

Foxconn Technology Group reported better-than-expected net profit as the Nvidia supplier continued to ramp up AI server shipments thanks to the artificial-intelligence boom.

The world's largest contract electronics maker posted a 17% gain in third-quarter net profit to 57.67 billion New Taiwan dollars, equivalent to US$1.86 billion. Analysts had expected NT$49.88 billion, according to a FactSet consensus. Revenue rose 11% from a year earlier to NT$2.059 trillion.

The robust earnings come as the Taiwanese company, formally known as Hon Hai Precision Industry, sharpens its focus on higher-growth areas. Foxconn, which until recently was best known as an iPhone assembler for Apple, has consolidated its position in the AI supply chain, by making AI servers for U.S. tech giants including Amazon and Nvidia.

Cloud and networking products--including AI servers--accounted for 42% of total revenue, remaining the company's largest business after surpassing smart consumer electronics for the first time the previous quarter.

Foxconn said Wednesday that cumulative AI server revenue reached NT$1 trillion as of the end of September, after it ramped up rack shipments following major manufacturing and assembly breakthroughs.

Investors have continued to snap up Foxconn's shares. The stock, up more than 35% so far this year, hit an all-time high in late October, after Chairman Young Liu said he met with OpenAI Chief Executive Sam Altman to discuss potential future collaborations. Its shares have also received a boost from tech giants' recent multibillion-dollar AI deals, which have had ripple effects across the semiconductor value chain.

Foxconn said last month that its board approved a NT$42 billion investment plan to procure equipment to build an AI computing cluster and supercomputing center. In May, the company said it was working with Nvidia to build an AI supercomputing center in Taiwan with 10,000 Nvidia Blackwell chips.

U.S. tariff uncertainty remains, however, casting a cloud over its business. Taiwan is still subject to a 20% reciprocal tariff, and President Trump has announced 100% tariffs on semiconductors unless companies invest in the U.S.

In its earnings call after second-quarter results, Foxconn said that the company was expanding its AI server manufacturing capacity in Texas and Wisconsin due to the AI boom.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

November 12, 2025 02:08 ET (07:08 GMT)