Hon Hai Group is headquartered in Taipei, Taiwan.
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Taiwanese FoxconnThe world’s largest contract electronics maker saw third-quarter revenue beat expectations and hit a record high on strong demand for artificial intelligence servers.
Revenue at Apple’s largest iPhone assembler increased 20.2% year-on-year to NT$1.85 trillion (US$57.3 billion).
“This result exceeds the company’s initial expectations for significant growth,” Foxconn said in a statement on Saturday.
It’s also ahead of the NT$1.79 trillion of the LSEG SmartEstimate, which puts more weight on the forecasts of analysts who are consistently accurate.
Foxconn said strong demand for artificial intelligence servers, whose customers include artificial intelligence chip company Nvidia NVDA.O , led to strong revenue growth at its cloud and networking products unit.
For smart consumer electronics, including the iPhone, quarter-on-quarter growth was strong due to the launch of new products, but year-over-year performance was flat.
The third quarter is traditionally a period when Taiwanese technology companies begin competing to supply smartphones, tablets and other electronics to major suppliers such as Apple in anticipation of the year-end holidays in Western markets.
Total revenue in September alone reached NT$733 billion, an annual increase of 10.9%, the second highest level for the month.
“Entering the peak season in the second half of the year, we expect our operations to gradually gain momentum,” Foxconn said of its outlook for the current quarter.
“The fourth quarter is expected to be broadly in line with current market expectations,” it added without elaborating.
The company does not provide numerical forecasts.
Foxconn’s stock price has risen 86% so far this year, far exceeding the 24% rise in Taiwan’s stock market. On Friday, ahead of the earnings data, the company closed up 3.7%, while the benchmark index fell 0.4%.
The company will report full third-quarter earnings on Nov. 14.
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