Foxconn’s AI Server Sales Surge, Outpacing iPhone Revenue Again
Foxconn (HNHPF), the world's largest electronics manufacturer, posted a 17% year-over-year profit increase to $1.89 billion in Q3, surpassing analyst expectations of $1.65 billion. The growth was primarily fueled by soaring demand for AI servers, marking the second consecutive quarter where cloud and networking revenue eclipsed smartphone sales—including iPhone assembly for Apple.
Chairman Young Liu teased a potential OpenAI collaboration, though details remain undisclosed. The shift reflects broader capital allocation trends among tech giants like Amazon, Microsoft, and Alphabet, which are pouring billions into data center expansion to support AI development. As Nvidia’s primary AI server supplier, Foxconn stands to benefit from this momentum. Shares dipped 0.95% to $15.98 on Tuesday.
