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 result exceeded the company’s original expectations of significant growth,” Foxconn mentioned in a press release on Saturday.
It was additionally forward of a T$1.79 trillion LSEG SmartEstimate, which supplies larger weight to forecasts from analysts who’re extra persistently correct.
Sturdy AI server demand led to sturdy income progress for its cloud and networking merchandise division, mentioned Foxconn whose clients embody AI chip agency Nvidia (NASDAQ:).
For good client 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 produce smartphones, tablets and different electronics to main distributors resembling 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 stage for the month.
“Entering the peak season in the second half of the year, we anticipate our operation to gradually gain momentum,” Foxconn mentioned of its outlook for the present quarter.
“The fourth quarter is expected to be roughly in line with current market expectations,” it added, with out elaborating.
The corporate doesn’t present numerical forecasts.
Foxconn’s shares have jumped 86% thus far 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 declares new merchandise or partnerships.
($1 = 32.2900 Taiwan {dollars})
