Foxconn Forecast to Post 20% Profit Growth in Third Quarter

The Taiwanese electronics maker, formally known as Hon Hai Precision Industry, reported third-quarter revenue of NT$3.027 trillion, a 47% increase year over year. It attributed the growth to strong demand for cloud and networking products.

Foxconn shares were roughly flat over the quarter as investors balanced demand for AI hardware against concerns over Big Tech’s heavy investment spending. The stock fell again last week after a sweeping Democratic victory in the U.S. midterm elections prompted concern about tighter AI regulation and slower data-center expansion.

Investors will watch for any change in management’s outlook for AI demand, including its view of the 2027 AI server market. In August, rotating chief executive Michael Chiang said global AI investment remained intact. Foxconn has also said it expects AI rack shipments to at least double this year, with Vera Rubin racks entering mass production in the third quarter ahead of fourth-quarter shipments.

Margins are another focus. Analysts expect the Vera Rubin production ramp-up could weigh on gross margin in the second half, citing higher hardware costs and complex manufacturing requirements. Foxconn generates substantial revenue but operates with relatively thin margins.