Taiwan-based Foxconn, the world’s largest contract electronics manufacturer, posted a sharp rise in third-quarter revenue as surging demand for artificial intelligence infrastructure lifted its cloud and networking business.

Revenue for the July-September quarter climbed 47% year-on-year to T$3.03 trillion ($95.4 billion), beating the T$2.83 trillion forecast from analysts tracked by LSEG.

The stronger-than-expected performance highlights the growing impact of AI-related hardware demand on Foxconn’s business as technology companies continue to invest heavily in data centres and computing infrastructure.

AI Business Leads Growth

Foxconn said its cloud and networking products recorded strong growth during the quarter, driven primarily by continued demand linked to AI.

Its smart consumer electronics business, which includes products such as iPhones, also delivered significant growth during the period.

September was particularly strong, with monthly revenue rising 38% year-on-year to T$1.16 trillion. It marked Foxconn’s strongest monthly revenue on record and the first time the company exceeded T$1 trillion in monthly sales.

AI Demand Expected to Stay Strong

Foxconn expects its AI-related operations to maintain their growth momentum during the fourth quarter.

The company also anticipates support from the traditional second-half peak season for consumer electronics, which could help keep overall performance broadly aligned with current market expectations.

However, Foxconn cautioned that global economic and political uncertainty remains a risk to its outlook.

The company, formally known as Hon Hai Precision Industry, does not issue specific financial forecasts and is scheduled to release its full third-quarter earnings on November 12.

Shares Lag Taiwan’s Market Rally

Despite the strong revenue performance, Foxconn’s stock has gained about 10% this year, significantly trailing Taiwan’s benchmark market, which has risen roughly 72% over the same period.

Foxconn shares closed 1.2% higher on Monday before the revenue figures were released, while Taiwan’s benchmark index gained 2.6%.

The latest results underline how rapidly AI infrastructure is becoming a major growth engine for one of the world’s biggest electronics manufacturers, while also exposing Foxconn to the broader risks facing global technology supply chains.