Foxconn (FXCOF, Financials), formally known as Hon Hai Technology Group, has reported a 20% increase in third-quarter revenue to 1.85 trillion New Taiwan dollars ($57.12 billion), marking a record for the period as the company continues to benefit from high demand for AI servers and its expanding partnership with Nvidia (NVDA, Financials).
The financial results of the corporation show a robust performance motivated by important divisions like cloud infrastructure and artificial intelligence.
Operating profit rose 19% to 54.8 billion New Taiwan dollars; net profit for the third quarter came at 49.3 billion New Taiwan dollars ($1.52 billion), a 14% rise from the same time previous year. Reporting at 114.7 billion New Taiwan dollars, a 12% year-over-year rise, gross profit From 3.11 New Taiwan dollars last year, Foxconn’s profits per share climbed to 3.55 New Taiwan dollars.
For Foxconn, the need for artificial intelligence servers has been especially important; sales of these goods more than doubled throughout the first nine months of 2024. Up from 29% in the previous quarter, the business said the cloud and networking divisionwhich includes AI serverscontributed 32% to overall sales during the third quarter.
Foxconn also stated noteworthy October and November monthly sales. With an 8.6% growth over October 2023, revenue in October reached a record high of 804.8 billion New Taiwan dollars ($25.20 billion). Revenue increased by 3.5% year-over-year to 672.6 billion New Taiwan dollars ($20.75 billion), second highest monthly revenue in November.
Citing the customary peak season and continuous demand for AI servers as major reasons, Foxconn expects to see significant rise in both quarterly and yearly operations for the fourth quarter of 2024. Through calculated investments in new technology and geographical development, the corporation keeps broadening the sources of income.
Foxconn has grown its worldwide manufacturing presence in reaction to possible taxes on products from Mexico, Canada, and China as well as global supply chain issues. The corporation is aggressively spreading manufacture with fresh investments in Vietnam, Mexico, and the United States. According to The Wall Street Journal, Foxconn is also increasing the manufacture of artificial intelligence servers with intentions to build a sizable plant in Mexico devoted to producing Nvidia’s GB200 servers with exports predicted in 2025.
Efforts at diversification by Foxconn also include the electric vehicle market. Seeking to position itself in the expanding EV market, the business debuted two new electric vehiclesthe MODEL D, a multifunctional utility vehicle, and the MODEL U, a midi-sized electric busduring the Hon Hai Tech Day 2024.
https://finance.yahoo.com/news/foxconn-sees-record-third-quarter-201129649.html
