Apple supplier Foxconn's profit beats forecasts as it rides AI boom

Foxconn beats profit expectations driven by AI server demand, maintains forecast for significant revenue growth.

Apple supplier Foxconn on Wednesday surpassed expectations with a 6% rise in quarterly net profit, driven by a boom in demand for AI servers, and stood by its forecast for full-year revenue to grow significantly.

The world's largest contract electronics maker said it expected robust demand for artificial intelligence servers to continue to boost growth into the fourth quarter.

Foxconn said the development schedule for AI semiconductor leader Nvidia's GB200 chip was on track, adding product delivery will start in the fourth quarter in small volumes, which would rise in early 2025.

"If the schedule remains unchanged, the performance of the entire AI server segment may be better than originally estimated," Foxconn vice president and spokesman James Wu said.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Wu emphasized Foxconn's leading position in the AI server market, which he said accounted for than 40% of the global market share, adding its capacity and technology would not be easily challenged by competitors.

"That will not be changed in a short time," he said.