Foxconn Reports Record Q3 Revenue Amid AI Server Demand and Nvidia Partnership

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Samiat

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Nov 12, 2024
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Foxconn Reports Record Q3 Revenue Amid AI Server Demand and Nvidia Partnership

Foxconn, also known as Hon Hai Technology Group, posted a 20% year-over-year increase in third-quarter revenue, reaching a record 1.85 trillion New Taiwan dollars ($57.12 billion). The surge was driven by robust demand for AI servers and an expanding partnership with Nvidia.

Key Financial Highlights

Revenue Growth: +20% YoY to NT$1.85 trillion.

Operating Profit: Increased 19% to NT$54.8 billion.

Net Profit: Rose 14% YoY to NT$49.3 billion ($1.52 billion).

Gross Profit: Climbed 12% to NT$114.7 billion.

Earnings Per Share: Increased from NT$3.11 to NT$3.55.


AI Servers Drive Growth
AI server sales more than doubled in the first nine months of 2024, contributing significantly to revenue. The cloud and networking division, which includes AI servers, accounted for 32% of total sales in Q3, up from 29% in the previous quarter.

Record Monthly Revenues in October and November
October 2024: Revenue hit a record NT$804.8 billion ($25.2 billion), up 8.6% YoY.
November 2024: Revenue reached NT$672.6 billion ($20.75 billion), marking a 3.5% YoY increase.


Outlook for Q4 2024
Foxconn anticipates strong growth in both quarterly and annual operations, citing peak seasonal demand and sustained AI server sales. The company continues to diversify through investments in advanced technologies and global expansion.


Global Expansion and Manufacturing Initiatives
Foxconn is addressing potential trade barriers and supply chain challenges by expanding its manufacturing footprint:

Investments in Vietnam, Mexico, and the U.S. aim to reduce reliance on China.

AI Server Manufacturing: Foxconn plans to build a plant in Mexico dedicated to producing Nvidia's GB200 servers, with exports expected by 2025.


Electric Vehicle Expansion
Foxconn is entering the electric vehicle (EV) market with the launch of:

MODEL D: A multifunctional utility vehicle.

MODEL U: A mid-sized electric bus.
These were unveiled during Hon Hai Tech Day 2024 as part of its strategy to capitalize on the growing EV sector.


Foxconn’s Q3 results and strategic initiatives highlight its commitment to innovation and diversification, positioning the company for continued growth in AI, EVs, and global manufacturing.