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 tech giant Foxconn reported a net profit for the third quarter that surpassed forecasts, as demand for AI servers used in data centres drives growth. The world's largest electronics contract manufacturer has expanded beyond producing low-margin iPhones to manufacturing AI servers for Nvidia, electric vehicles, and robots.
Foxconn's shares and those of other tech firms fell last week due to concerns over potential increased regulation of AI by US Democrats and controversy surrounding Nvidia's board. Despite these challenges, Foxconn's profit for July-September reached T$77.5 billion, a 34% increase year-on-year, beating analyst estimates of T$70.3 billion.
The company's profitability is improving, and demand for AI servers is strong, according to Foxconn. Revenue for the quarter increased by 39% to T$7.7 trillion. Foxconn has collaborated with Nvidia to build an AI factory supercomputer in Taiwan. The global buildout of data centres to support AI tools has boosted Foxconn's business, but any slowdown could negatively impact the company's financial performance.
AI data centres consume significant amounts of electricity, potentially straining grids reliant on fossil fuels and increasing pressure on water resources needed for cooling equipment. This has led to growing global concerns over the environmental impacts, noise, pollution, appearance, and employment opportunities associated with these facilities.
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.
