Taiwan's Foxconn, the world's largest contract electronics maker and Nvidia's biggest server supplier, said Saturday that third-quarter results are on track to beat market expectations, citing surging demand for artificial intelligence hardware and the seasonal peak in electronics orders. Formally known as Hon Hai Precision Industry, the company reported that August revenue climbed 51.98% from a year earlier to T$921.8 billion ($29.15 billion), the highest total ever recorded for that month.
That was the second straight month Foxconn's revenue topped T$900 billion, a run it linked to AI server orders rather than its traditional smartphone and laptop assembly work. Shares in the company closed up 3.4% in Taipei trading on Friday, outpacing the benchmark Taiex index's 1.5% gain for the session. Without issuing numerical forecasts, Foxconn said only that visibility for the July-to-September quarter had improved from the previous month.
August Revenue Hits Record, Profit Momentum Builds
According to Reuters, the improved outlook follows a second quarter in which Foxconn's net profit rose 35% from a year earlier, beating analyst forecasts. "Currently, the company's visibility for the third quarter has improved compared to the previous month, with overall performance expected to outperform market expectations," the company said in a statement. It did not elaborate on which product lines or customers were driving the gains.
Foxconn, listed in Taipei as Hon Hai Precision Industry (2317.TW), assembles AI servers for Nvidia and remains one of Apple's largest manufacturing partners, giving it exposure to both the data-center and consumer-electronics ends of the current technology cycle. Still, the company flagged one caveat, saying it needed to keep monitoring what it called a "volatile" global political and economic environment.
Sharp Taps Foxconn's Supply Chain to Enter Japan's AI Server Market
Sharp Corp., the Osaka-based electronics maker whose parent company is Foxconn, said separately on Sept. 15 that it had begun accepting domestic orders for AI servers built through its Taiwanese parent's manufacturing network. At a Tokyo press conference, chief executive Tetsuji Kawamura announced the move alongside Koji Utoku, who heads Sharp's newly created AI server division.
Sharp said it is working with several Japanese and overseas partners to build AI infrastructure inside the country, with server sales scheduled to start in fiscal 2027, which begins next April. Because component supply across the server industry remains tight, Sharp's pitch to customers rests heavily on Foxconn's procurement scale, Nikkei Asia reported.
The launch marks Sharp's most direct move yet into the AI server business that has driven record revenue and profit growth at its Taiwanese parent over the past year.