Foxconn's Revenue Up 20%, Targets 40% of AI Server Market on Nvidia Demand

Nov 14, 2024, 07:28 AM

Foxconn, also known as Hon Hai Precision Industries, reported a stronger-than-expected net income of approximately $1.5 billion for the third quarter, surpassing analysts' estimates of around $1.408 billion. The company's revenue rose 20% year-over-year to a record $57.01 billion, driven by persistent demand for servers powering AI applications. Foxconn, a major assembler for Apple's iPhone and key supplier for Nvidia's AI servers, has prepared its production capacity to meet the "crazy" demand for these servers. The company is optimistic about the tech industry outlook in 2025 and plans to increase investments in the United States (Wisconsin and Texas), Mexico, and Vietnam. Foxconn expects AI servers to continue growing rapidly in the next few years, forecasting that AI servers will account for 50% of its total server revenue in 2025. The company anticipates holding 40% of the global market share for AI servers next year, with shipments for Nvidia's AI servers projected to grow quarter by quarter.