Foxconn, the world’s largest contract electronics manufacturer and the unspoken king of assembling your precious doom scrolling addictions iPhones, just made its third-quarter revenue report public (see: leaked to the press)—and its a friggin doozy people. 

(Source: Giphy) 

In short, The Taiwan-based juggernaut posted a record-shattering T$1.85 trillion (that’s $57.3 billion for those who don’t speak “Taiwanese”) in revenue, beating both its own and the market’s expectations. All thanks to—drumroll, please—our old friend, artificial intelligence (legit NOT a shocker). 

(Source: Giphy) 

Now, I know what you’re thinking: “AI? Again?!” Yes, again. ICYMI, AI continues to be the golden goose of the tech world, and Foxconn is out here building the literal backbone of the AI revolution and raking in billions. The company’s AI server demand hit levels that can only be described as "obscenely high," thanks to its BFF Nvidia (aka the same Nvidia that’s been turning your graphics cards into gold bars). 

(Source: Giphy) 

But with that said, let’s not pretend that Foxconn is just Apple’s personal sweatshop anymore. Sure, they assemble iPhones like your grandma knits scarves, but that’s not where the big bucks came from this quarter. In fact, sales of smart consumer electronics (read: iPhones) were surprisingly flat year-over-year. Why? Well, it appears Apple can’t sell more iPhones when everyone already has one (LOL). But hey, who needs iPhones when you’re building the future of Skynet, amirite?

(Source: Tech Mag) 

Additionally, Foxconn’s cloud and networking products division, which caters to companies like Nvidia, saw a massive boost. This was the real breadwinner behind that 20.2% year-on-year revenue jump. And while the iPhones enjoyed some quarter-on-quarter growth thanks to new product launches (see: Apple Intelligence), it’s clear that Foxconn’s eggs aren’t all in Tim Cook's “meh” basket. 

You see, September alone brought in a cool T$733 billion for Foxconn. That’s a 10.9% jump compared to last year, making it the second-highest revenue month in the company’s history. So while you were deciding whether to upgrade your phone for marginally better camera quality, Foxconn was busy stacking cash like it’s going out of style.

(Source: Giphy) 

Plus, keep in mind that this banger of a revenue report is coming out as we head knee deep into the holiday season—aka the time of year when Westerners panic-buy electronics they don’t need. Meaning, surprise surprise…  Foxconn’s momentum is only expected to grow going into 2025. 

But, but, but… what about guidance? Well, it appears Foxconn’s management is channeling their inner Barry Sanders after this revenue drop. Meaning, they are staying humble with their fourth-quarter outlook, saying results will likely be “in line” with current market expectations. Translation? The company knows their sh^t don’t stink, but doesn’t feel the need to boast about it - so while Foxconn is optimistic, they’re also not promising the moon—(even though they already know they are going to be dunking on everyone in Q4 again.) 

(Source: Mobile World Live) 

Now when it comes to Foxconn’s stock, it has been moonwalking its way through 2024, up a nice 24.43% this year. This of course included shares popping another 3.7% after the revenue announcement. But before you go mortgaging your house to scoop up Foxconn stock, let’s hit pause for a second…

Yes, the AI boom is making Foxconn look like a genius right now, but pivots like this don’t come without risk. If demand for AI servers starts to fizzle—or if, God forbid, Nvidia or Apple has a bad holiday season— it could spell trouble for Foxconn’s high-flying stock. Especially considering the looming specter of environmental concerns tied to AI emissions that make tech giants look as eco-friendly as a coal plant. (You didn’t think all those servers were just running on fairy dust, did you?)

(Source: Giphy) 

So yeah, that definitely could be a hiccup for the company in the future. But I guess we’ll cross that bridge when we get to that point.

For now though, Foxconn’s full Q3 earnings report drops on November 14, and you can bet the world will be watching. Plus, their annual Tech Day on October 8-9, which is basically Foxconn’s version of a hype party, may bring the market some new AI-powered gadgets, partnerships, and maybe even a few more “holy sh^t” moments that keep that stock price steaming even more. 

(Source: Giphy) 

In the end though, it’s no secret Foxconn is crushing it on the back of AI demand, but the future is far from guaranteed. In the meantime, keep an eye on that stock ticker and as always, stay safe and stay frosty, friends! Until next time…

P.S. Another winner! Friday morning's surprise alert ended the day with a nice 53% gain! Click here to upgrade to premium to make sure you don’t miss out on the next one. 

Stocks.News holds in Apple as mentioned in the article.