Hon Hai Precision Industry Co., the parent company of Foxconn, announced its financial results for the third quarter of 2024. The company reported a net profit of TWD 49.3 billion (approximately CNY 10.98 billion) for the period from July to September, reflecting a 14% year-on-year increase. This marks the fifth consecutive quarter of profit growth, surpassing analysts' expectations of TWD 46.3 billion.
Hon Hai, a key supplier for tech giants Apple and NVIDIA, maintains an optimistic outlook for 2024, anticipating significant sales growth. The company forecasts that artificial intelligence (AI) servers will account for 50% of its total server revenue next year. Last month, Hon Hai revealed a 20% year-on-year increase in third-quarter revenue, buoyed by strong AI server sales, achieving its highest quarterly revenue to date.
Looking ahead, Hon Hai expects continued strong performance in the fourth quarter. In October, the company reported revenue of TWD 804.8 billion (approximately CNY 179.27 billion), an 8.59% increase from the previous year and a 9.8% monthly rise, setting a record high for the period. Despite providing no specific guidance for fourth-quarter earnings, Hon Hai anticipates year-on-year revenue growth.
Additionally, Hon Hai announced plans to build the world’s largest NVIDIA “super chip” GB200 production facility in Mexico. The GB200 plays an integral role in NVIDIA's next-generation Blackwell computing platform. Driven by confidence in its AI prospects, Hon Hai's stock has surged 74.24% year-to-date, outpacing the broader market's 28% gain.
