Foxconn, Apple's largest supplier, announces a 14% increase in its net profit for the third quarter.

Foxconn Precision Industry Co. Ltd, the Chinese precision manufacturing company and a major supplier to American technology company Apple, announced a 14% year-on-year increase in its net profit for the third quarter of 2024, surpassing experts' estimates.

According to the business report, Foxconn's net profit, headquartered in Taiwan, reached NT$46.09 billion (approximately US$1.52 billion) for the year ending September 2024.

At the same time, Foxconn's revenues increased by 20% in the third quarter compared to the same period last year, reaching NT$1.855 billion (equivalent to US$56.91 million).

October sales for Foxconn, officially known as Hon Hai Precision Industry, reached an all-time high for the month, and the company expects revenue growth in the next quarter as well, although it did not provide specific numerical guidance.

Foxconn, the world's largest contract electronics manufacturer, attributed this growth to strong demand for artificial intelligence servers, which accounted for 32% of the company's quarterly revenue.

This was followed by cloud services offered by Foxconn, then networking businesses as major revenue sources, marking the fifth consecutive quarter of profit increases for Foxconn.

The company expects even greater growth in AI server shipments and anticipates capturing a 40% share of the global market in this category by 2025.

This comes after Foxconn recently announced that it is building the largest manufacturing facility in the world for the leading GB200 chips produced by Nvidia in Mexico, to support Nvidia's next-generation Blackwell computing platform.

This followed a decline in Foxconn's shares listed on the Taiwan Stock Exchange (2354.TW), which fell by about 1.71% as of Thursday's closing session in Asia, recording NT$92.00.

Foxconn's shares have doubled since the beginning of 2024, surpassing the 28% increase in the broader market index, supported by optimism regarding AI forecasts.