Nvidia Gets Another AI Demand Signal As Foxconn Sales Hit Record High – Apple Faces Holiday Test

Foxconn said its Cloud and Networking Products business benefited from “strong pull-in momentum for AI products.”

• Foxconn reported record September revenue of $36.5 billion and third-quarter revenue reached $95.3 billion.
• The firm expects AI-related operations to continue growing in the fourth quarter alongside the traditional second-half ICT peak season.
• The company is a major Apple manufacturing partner and a key builder and integrator of Nvidia-based AI infrastructure.

Foxconn, also known as Hon Hai Precision Industry, posted its strongest-ever monthly revenue in September, offering a fresh read on demand across the AI infrastructure and consumer electronics markets heading into the final quarter.

One of the largest assemblers of Apple (AAPL) products and key builder of Nvidia (NVDA)-based AI servers reported September revenue of $36.5 billion (NT$1.16 trillion) , up 25.7% from August and 38.4% from a year earlier. 

This is the first time Foxconn’s monthly revenue topped NT$1 trillion and surpassed the previous record of NT$946.5 billion set in July. 

Foxconn Sees Strong AI Pull-In Heading Into Q4

Foxconn said its Cloud and Networking Products business delivered significant growth in September, driven by “strong pull-in momentum for AI products.” The segment also posted strong year-over-year growth, while Computing Products benefited from pull-in momentum.

The strength continued through the quarter. Foxconn reported third-quarter revenue of $95.3 billion, up 20.4% sequentially and 47.1% year over year. Nine-month revenue reached $241.57 billion, up 39.5% from a year earlier, with both periods setting records.

Foxconn expects AI-related operations to continue growing in the fourth quarter, alongside the traditional second-half peak season for ICT products. The company cautioned that a volatile global political and economic environment remains a risk.

Nvidia Gets A Fresh AI Infrastructure Read

The Nvidia connection is increasingly important because AI infrastructure requires more complex systems than conventional servers. Foxconn manufactures and integrates systems built around Nvidia’s accelerated-computing platforms, including GB200 and GB300 NVL72 racks, alongside power delivery, liquid cooling, mechanical systems and networking integration.

The companies expanded their partnership in October 2023, when they announced plans to develop “AI factories” using Nvidia computing and software.

NVDA stock edged 0.4% higher despite the broader market mood, but retail sentiment on Stocktwits around the AI bellwether shifted to ‘bearish’ from ‘neutral’ territory over the past day. 

NVDA stock retail sentiment on October 5 as of 7:45 a.m. ET | Source: Stocktwits

Apple Heads Into A Critical Holiday Period

Foxconn’s consumer-electronics business also posted strong month-over-month growth in September, which the company attributed to a new product launch. However, the category was roughly flat year over year. That gives Apple investors another data point heading into the holiday selling season.

AAPL stock edged 0.2% lower in pre-market trade on Monday amid broader market weakness. On Stocktwits, retail sentiment around the iPhone maker trended in ‘bearish’ territory over the past day. 

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