TAIPEI (Reuters) -Taiwan’s Foxconn, the world’s largest contract electronics maker, beat expectations to submit its highest-ever income for the third quarter on sturdy demand for synthetic intelligence (AI) servers.
Income for Apple (NASDAQ:)’s greatest iPhone assembler jumped 20.2% 12 months on 12 months to T$1.85 trillion ($57.3 billion).
“The end result exceeded the corporate’s authentic expectations of serious progress,” Foxconn stated in a press release on Saturday.
It was additionally forward of a T$1.79 trillion LSEG SmartEstimate, which provides better weight to forecasts from analysts who’re extra constantly correct.
Sturdy AI server demand led to sturdy income progress for its cloud and networking merchandise division, stated Foxconn whose clients embrace AI chip agency Nvidia (NASDAQ:).
For good shopper electronics, which incorporates iPhones, there was a robust quarter-on-quarter progress because of new product launches, however its year-on-year efficiency was flat.
The third-quarter is historically when Taiwan’s tech corporations begin racing to provide smartphones, tablets and different electronics to main distributors comparable to Apple for Western markets’ year-end vacation interval.
Complete income in September alone reached T$733 billion, up 10.9% 12 months on 12 months and the second-highest ever degree for the month.
“Coming into the height season within the second half of the 12 months, we anticipate our operation to regularly achieve momentum,” Foxconn stated of its outlook for the present quarter.
“The fourth quarter is anticipated to be roughly according to present market expectations,” it added, with out elaborating.
The corporate doesn’t present numerical forecasts.
Foxconn’s shares have jumped 86% to date this 12 months, outperforming by far a 24% rise for the broader Taiwan market. They closed up 3.7% on Friday forward of the income knowledge launch, bucking a 0.4% fall on the benchmark index.
The corporate will report its full third-quarter earnings on Nov. 14. It has scheduled its annual Tech Day on Oct. 8-9, an occasion the place Foxconn usually broadcasts new merchandise or partnerships.
($1 = 32.2900 Taiwan {dollars})
