AI server demand remains strong, Hon Hai's third-quarter revenue hits a new high | Financial Report Insights
The company's third-quarter revenue was NT$1.85 trillion, a year-on-year increase of 20.15%, reaching a new high for the same period in previous years, exceeding the analysts' general expectation of NT$1.78 trillion
Benefiting from strong demand for AI servers, Hon Hai's revenue in the third quarter showed strong growth.
On Saturday, October 5th, the latest sales data from Foxconn's parent company, Hon Hai Precision Industry Co., Ltd., showed that the company's revenue in the third quarter reached NT$1.85 trillion, a year-on-year increase of 20.15%, hitting a new high for the same period in history and surpassing the analysts' general expectation of NT$1.78 trillion; the company's revenue in September was NT$733.024 billion, a year-on-year increase of 10.94%, the second highest for the same period in history.
In terms of profit, the net profit in the third quarter was NT$35 billion, a year-on-year increase of 6%, reaching a new high for the same period in history.
By business segment, cloud and network products, components and other products, and computing products all achieved strong growth, while smart consumer electronics products showed relatively stable performance.
Cloud and Network Products: Benefiting from strong demand for AI servers, both quarter-on-quarter and year-on-year revenue achieved strong growth.
Components and Other Products: Revenue showed strong year-on-year growth, mainly due to increased shipments of key components and growth in the automotive-related business.
Computing Products: Revenue achieved strong year-on-year growth due to the launch of new products.
Smart Consumer Electronics Products: With the launch of new products this quarter, there was strong quarter-on-quarter growth, while year-on-year performance remained stable.
The growth in Hon Hai's revenue is attributed to the continuous increase in demand for AI servers such as NVIDIA GPUs. In August this year, the company stated that it expected revenue to increase in the second half of the year.
As the world's largest iPhone assembler, Hon Hai's business remains closely related to Apple's business. In the second quarter, around 40% of Hon Hai's revenue came from the smart consumer electronics category, including the iPhone, while cloud and network products, including AI servers, contributed about 32%.
Since the beginning of this year, Hon Hai's stock price on the Taiwan Stock Exchange has risen by nearly 85%.
