Foxconn (FXCOF, Finance), formally known as Hon Hai Technology Group, reported a 20% increase in third-quarter revenue to NT$1.85 trillion ($57.12 billion). , set a record for the same period as the company continues to benefit. High demand for AI servers and growing partnership with Nvidia (NVDA, Finance).
The company’s financial results show strong performance from key segments such as cloud infrastructure and artificial intelligence.
Operating profit increased by 19% to NT$54.8 billion. Net profit for the third quarter was NT$49.3 billion ($1.52 billion), an increase of 14% year-on-year. Gross profit reported at NT$114.7 billion, up 12% year-on-year; Foxconn’s earnings per share increased to NT$3.55 from NT$3.11 last year.
The need for artificial intelligence servers was particularly important to Foxconn. Sales of these products more than doubled in the first nine months of 2024. The company said its cloud and networking division, which includes AI servers, contributed 32% to overall revenue in the third quarter, up from 29% in the previous quarter.
Foxconn also said its monthly sales numbers for October and November were noteworthy. Sales in October reached a record high of NT$804.8 billion ($25.2 billion), recording a growth of 8.6% compared to October 2023. Revenue rose 3.5% year-on-year to NT$672.6 billion ($20.75 billion), making it the second-highest monthly revenue in November.
Citing the traditional peak season and continued demand for AI servers as the main reasons, Foxconn expects to see significant quarterly and annual operational increases in the fourth quarter of 2024. Through calculated investments in new technology and geographic development, the company continues to expand its sources. of income.
Foxconn has been increasing its global manufacturing presence in response to potential taxes on products from Mexico, Canada and China as well as global supply chain issues. The company is aggressively expanding its manufacturing with new investments in Vietnam, Mexico and the United States. According to the Wall Street Journal, Foxconn is also ramping up production of artificial intelligence servers and intends to build a large factory in Mexico dedicated to producing Nvidia’s GB200 servers, which are expected to be exported in 2025.
Foxconn’s diversification efforts also include the electric vehicle market. In a bid to solidify its position in the expanding EV market, the company debuted two new electric vehicles during Hong Hai Tech Day 2024: Model D, a multi-function utility vehicle, and Model U, a medium-duty electric bus. .
This article first appeared on GuruFocus.
