Investors always closely monitor the financial performance of companies, first detecting shifts in market conditions for AI component suppliers. In this context, Foxconn acted as a clear indicator of the technological cycle, with its Q3 net profit rising 17% to $1.9 billion, exceeding analysts’ expectations. The company’s revenue increased by 11% to $66.29 billion, which is in line with forecasts; however, the composition of this growth is more significant than the figures themselves.
Despite volatility in the semiconductor segment, Foxconn’s positive results, alongside with the expectations of new Nvidia revenue data, added optimism and momentum to the market and ES futures in particular. Bidders note that the capital flow is gradually shifting towards companies involved in AI infrastructure, from chipmakers to contract server builders.
Foxconn remains Nvidia’s key assembly partner for AI-load-oriented data centers, and simultaneously — Apple’s largest contract manufacturer of consumer electronics, thus securing as clients two largest players by their market cap on the SP500 heatmap. The company’s profit dynamics reflects a balance between two key areas of technological growth — consumer devices and AI infrastructure. The company confirmed that revenue will rise both year-over-year and sequentially in the current quarter, and its server business will continue to grow at a faster pace. Analysts expect Foxconn’s revenue to rise by about 15% by the end of the year, while shares have already grown by 30% since the beginning of the year as investors increasingly view Foxconn as a direct beneficiary of the global AI boom.
CEO and Chairman of the Board of Directors Yang Liu is pursuing a strategy of deep diversification, consistently reducing the dependence on the contract assembly of Apple devices. If a few years ago Foxconn was associated almost exclusively with iPhones, now the company is actively rebuilding its production model to serve the rapidly expanding AI and server systems market.
Over the next three years, North America will become Foxconn’s largest server supply market. Facilities in Mexico, California, Wisconsin, and Texas will significantly expand assembly capacity, which may soon be joined by a plant in Ohio, previously designed to produce electric vehicles. There Foxconn will begin assembling server equipment for the large-scale Stargate project.
Yang Liu pays special attention to automation. Within the next six months, Foxconn will deploy humanoid robots trained with the GR00T N model on Nvidia’s Isaac platform. According to the head of the company, operational speed is becoming a critical success factor in the age of AI, and robotics provides Foxconn with an important competitive advantage.
The company plans to substantially increase capital expenditures to expand production of server systems in the United States, while reducing investments in Vietnam and India. Contract assembly of consumer electronics is no longer a priority — in the second quarter, revenue from the server sector exceeded that from Apple products for the first time.
Simultaneously, Foxconn is preparing to play a significant role in the development of the sovereign AI ecosystem, where local models are trained and run on domestically assembled equipment. In Japan, Foxconn will launch server production for AI infrastructure at a former Sharp plant, while core manufacturing in Taiwan will also continue to expand.
Additionally, the company maintains its ambitions in the automotive sector. Yang Liu aims to secure all ten of Japan’s top automakers as clients of Foxconn. So far, cooperation has been officially established with Mitsubishi Motors only; however, the company’s head believes that the synergy of Japanese quality and Taiwanese speed of development will become a winning formula in the automotive industry.
Foxconn’s trajectory reflects a broader structural shift in the global technology market, where the priority is moving from consumer devices to AI infrastructure. Its success in the server segment illustrates a new paradigm: those who can quickly adapt to the demand architecture, rather than just follow it, are likely to capture the next wave of growth. Although the AI sector remains highly uncertain, companies like Foxconn demonstrate that a technological transition can be turned not into a threat, but a point of growth — if strategy and focus evolve at the right moment.