Taiwanese electronics giant Foxconn, a major Apple product assembler, delivered an upbeat forecast for 2027 following a third-quarter earnings beat driven by booming global investment in artificial intelligence infrastructure.
Reporting its financial results on Thursday, the world’s largest contract electronics manufacturer posted third-quarter net profit of NT77.52 billion ($2.36 billion), marking a 34% jump from a year earlier and surpassing analyst estimates of NT$69.6 billion. Quarterly revenue surged 46% year-over-year to roughly NT3.02 trillion, fueled largely by surging orders for rack-scale AI servers and high-speed networking gear.
During the company’s earnings call, Chairman Young Liu projected “double-digit” revenue expansion in 2027, identifying artificial intelligence as the primary engine propelling the company forward. He noted that global capital spending on AI by cloud service providers is expected to keep climbing next year, projecting that cloud and networking products will account for more than 60% of Foxconn’s total revenue within the next three to five years.
While best known as Apple’s primary iPhone, iPad, and Mac assembler, Foxconn has rapidly transformed its business mix to become the leading manufacturer of AI server racks for chipmaker Nvidia. To support that growth and diversify its geographic footprint, the company is expanding manufacturing capacity across North America — including new facilities in Texas and Mexico for AI server production — while assembling the majority of U.S.-bound iPhones in India.
Despite the bullish top-line trajectory, Liu struck a measured tone regarding supply chain constraints and broader macroeconomic conditions. He warned that tight supplies of semiconductors, memory, and other critical components across both AI and consumer electronics sectors are likely to persist into next year as demand continues to outpace available capacity. Additionally, Liu expressed caution over near-term prospects for the personal computer segment and noted that inflation, currency fluctuations, and geopolitical uncertainty remain potential headwinds for operating costs.
MacDailyNews Note: Ahead of Thursday’s earnings announcement, Foxconn shares dipped 0.8% in Taipei trading, outperforming a broader 2.6% decline on Taiwan’s benchmark index.
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