Revenue of Foxconn, the world’s largest contract electronics manufacturer based in Taiwan, was the highest ever in the third quarter of the current year.
The mentioned result is largely due to the growing demand for artificial intelligence servers. The corresponding tendency is because the AI industry is on an active development trajectory. An increase in the number of players is recorded in this segment of the global technological environment. There are consistently more and more artificial intelligence systems and apps powered by AI. Against this background, the growth in demand for artificial intelligence servers is a natural process.
The revenue of Foxconn, Apple’s largest iPhone assembler, in the third quarter of the current year, was fixed at 1.85 trillion Taiwanese dollars (US$57.3 billion). This indicator showed an increase of 20.2% compared to the result for the same period in 2023. In a statement released last week by Foxconn, it is noted that revenue for the third quarter of 2024 exceeded the company’s initial expectations of a significant growth in the corresponding figure.
The LSEG forecast provided that the revenue of the mentioned firm for July-September of the current year would be fixed at 1.79 trillion Taiwanese dollars. The final result exceeded these expectations.
The high level of demand for artificial intelligence servers contributed to a significant increase in revenue for the Foxconn arm, which specializes in cloud and networking products.
It is worth noting that one of the company’s clients is Nvidia, the largest developer of graphics processing units necessary for training and ensuring the process of subsequent operation of artificial intelligence systems. This Foxconn customer is one of the main beneficiaries of the so-called machine intelligence boom. In the summer, Nvidia’s market capitalization crossed the historical mark of $3 trillion.
The third quarter is a period when Taiwanese technology firms traditionally begin a kind of race to supply smartphones, tablets, and other electronics to large vendors such as Apple. The growth of the corresponding activity is associated with the year-end holiday period in Western markets.
Foxconn’s total revenue in September was fixed at 733 billion Taiwanese dollars. This indicator showed an increase of 10.9% compared to the result for the same period last year. In the company’s message, in the context of forecasts for the current quarter, it is noted that the firm expects its activities to gradually gain momentum.
Foxconn also assumes that its financial results for the fourth quarter of 2024 will roughly match the present market expectations. At the same time, the company did not detail these expectations without providing any specific projected figures. The firm did not provide a quantitative forecast.
Since the beginning of the current year, the value of Foxconn shares has increased by 86%. It is worth noting that the average similar increase of securities in the Taiwanese market is around 24%.
The company will publish a full report on its earnings for the third quarter of the current year on November 14. Also, this week, on October 8-9, Foxconn will hold its annual Tech Day. As part of this event, the company, according to long-term practice, announces new products or partnerships.
It is worth noting that recently the demand for artificial intelligence and sophisticated electronic devices has become a driving force for innovation and economic growth on a global level. Technology companies benefit from this state of affairs. It is also worth noting that artificial intelligence has significant potential. The most daring futurological forecasts provide that machine intelligence in the process of its technological evolution can become an alternative form of mind that exists in virtual space and surpasses human consciousness in terms of such parameters as cognitive abilities. It is worth noting that these scenarios are just assumptions that have yet to be confirmed or disproved by reality.
Currently, there is a process of intensive integration of artificial intelligence into many segments of the industry. AI is also likely to become an attribute of a person’s daily life. The implementation of this scenario is likely to have social and cultural consequences.
As artificial intelligence develops, companies strive to maintain a high level of competitiveness or at least not lose the existing minimum market share. For Foxconn, the era of AI in its current configuration is a period of growth and significant prospects. The demand for artificial intelligence servers is most likely to continue. The relevant background is favorable in terms of prospects for Foxconn. Also, the vision for the company’s future becomes even more optimistic, given its close cooperation with technology giants such as Apple and Nvidia. In the relevant context, it is worth noting separately that the current competitiveness of Foxconn is confident and sustainable. This is another argument in favor of the company’s optimistic prospects.
