Tech giant Foxconn beats forecasts with third-quarter profit jump AFP Thu, November 12, 2026 at 1:57 AM EST 2 min read 2317.TW -0.83% NVDA -4.46% Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Taiwanese tech giant Foxconn reported a forecast-beating net profit for the third quarter on Thursday, as the global buildout of data centres fuels demand for the artificial intelligence servers needed to operate them.
Foxconn, the world's largest electronics contract manufacturer, has gone beyond making low-margin iPhones to producing AI servers for US tech titan Nvidia, as well as electric vehicles and robots.
Its shares and those of other tech firms plunged last week on fears that US Democrats could use their newly won control of Congress to ramp up regulation of AI and slow the data centre expansion.
Foxconn partner Nvidia has also weighed on sentiment, with US media reporting the company's board is preparing to oust CEO Jensen Huang after revelations of his extramarital affairs, including with an alleged Chinese spy.
Foxconn said net profit for July-September hit NT$77.5 billion (US$2.4 billion), up 34 percent on-year.
The result beat estimates of NT$70.3 billion in a Bloomberg survey of analysts.
"Profitability continues to improve" and AI server demand looked "strong" moving forward, the company said in its earnings report.
Revenue for the three months was up 39 percent at NT$7.7 trillion.
Foxconn has a longstanding partnership with Nvidia. In one of their collaborations, the companies are working to build an "AI factory supercomputer" in Taiwan.
Governments and tech giants have been pouring huge sums into building data centres that can train and run AI tools such as chatbots, image generators and agents that can execute tasks.
The buildout has turbocharged business for Foxconn -- which makes the servers used in the centres -- but any slowdown could potentially hurt the company's bottom line.
AI data centres require large amounts of electricity, placing increased pressure on grids often still reliant on fossil fuels.
In many cases, they also ramp up strain on water resources used to cool computing equipment.
A backlash is growing worldwide against their environmental impacts, and there are also concerns over noise, pollution, their appearance and how many jobs the facilities actually create.
