Foxconn beats forecasts with Q3 profit jump
The Taiwanese tech giant has gone beyond making low-margin iPhones to producing AI servers for US tech titan Nvidia, as well as electric vehicles and robots.
Taiwanese electronics giant Foxconn has reported a 34% increase in net profit for Q3, surpassing analysts' estimates, as demand for AI servers drives growth. The company's shares and those of other tech firms had previously fallen due to concerns about potential AI and data centre regulation under newly Democratic-controlled US Congress.
Foxconn, which now manufactures AI servers for Nvidia and other industries, delivered T$77.5 billion ($2.4 billion) in profit, up from the projected T$70.3 billion. Revenue for the quarter rose 39% to T$7.7 trillion. Foxconn's partnership with Nvidia includes collaboration on an AI factory supercomputer in Taiwan. The company expects strong AI server demand moving forward, but growth could be affected by any slowdown in data centre development.
However, the proliferation of data centers for AI tools poses environmental concerns, including increased electricity use and pressure on water resources.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
