Foxconn Sets Revenue Record on AI and ICT Demand Surge

Foxconn has reported record-breaking revenue for September, hitting $36.5 billion, a 25.7% increase from August and a 38.4% rise year-over-year. This marks the first time the company's monthly revenue surpassed NT$1 trillion, exceeding the previous record set in July. The surge was driven by strong demand for AI-related products and traditional ICT peak season momentum. Foxconn's third-quarter revenue also reached a new high of $95.3 billion, up 20.4% sequentially and 47.1% year-over-year.

The company's Cloud and Networking Products business saw significant growth in September, attributed to a robust pull-in momentum for AI products. Foxconn expects AI-related operations to continue growing in the fourth quarter, despite cautioning about a volatile global political and economic environment. As a major manufacturer of Apple products and a key builder of Nvidia-based AI servers, Foxconn's performance provides insights into the demand for both consumer electronics and AI infrastructure.

Nvidia's connection to Foxconn is crucial as AI infrastructure requires more complex systems than conventional servers. Foxconn manufactures and integrates systems built around Nvidia’s accelerated-computing platforms, including GB200 and GB300 NVL72 racks. The companies expanded their partnership in October 2023 to develop 'AI factories' using Nvidia computing and software. Despite this, Nvidia stock edged slightly higher, while retail sentiment shifted to 'bearish' from 'neutral' territory.

Apple, as a key client of Foxconn, faces a critical holiday period. Foxconn's consumer-electronics business posted strong month-over-month growth in September, though it was roughly flat year over year. Apple stock edged slightly lower in pre-market trade, with retail sentiment trending in 'bearish' territory.