Taiwanese contract electronics supplier Foxconn offered a bullish outlook on artificial intelligence on Wednesday, noting that it would be a big driver of growth in 2026. Chairman Young Liu said in earnings call that the importance of AI would massively increase next year, though the company would also keep a wary eye on geopolitical and currency issues.
“Generally speaking, judging from what we see now, I am very optimistic about the AI market next year,” Liu said. While companies are increasingly worrying about the formation of an AI bubble similar to the dotcom boom and bust. However, Liu believes that industry was only getting started. “The development of AI is still just beginning,” he said.
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Foxconn also said in its earnings report that it should see significant year-on-year revenue growth in the fourth quarter with AI server revenue expected to increase quarter-on-quarter. It also predicted significant annual revenue growth, in line with previous guidance given in August. It did not elaborate, and the company does not provide numerical guidance for its full-year or quarterly outlook.
In the third quarter, revenue of Foxconn’s cloud and networking business, which includes AI servers, surpassed that of its smart consumer electronics business. The company noted that strong growth in AI servers lifted the share of Cloud and Networking Products to 42% from 41% in the previous quarter, keeping it as the largest contributor to overall revenue.
Foxconn also noted that third-quarter AI server rack shipments grew 300% quarter-over-quarter, enabling cumulative AI server revenue to reach the “NT trillion-dollar scale” ahead of schedule. Looking to the fourth quarter, shipments of next-generation AI server racks are expected to sustain double-digit sequential growth, according to the company.
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Foxconn is currently Nvidia’s biggest server maker, and Apple’s top iPhone maker. The company has been riding a data center boom, as firms like Amazon, Microsoft, and Google spend billions of dollars to expand their AI infrastructure and research capacity.
Foxconn also teased a new announcement with OpenAI. The company, which is formally called Hon Hai Precision Industry, will be hosting its annual tech day in Taipei next week, and Liu said there would be an announcement at the event connected to the ChatGPT-maker. However, there were no further details provided on it.
Back in August, Foxconn announced it will partner with Japan’s SoftBank to produce data center equipment at its former electric vehicle plant in Ohio, a move tied to the Stargate project aimed at boosting U.S. artificial intelligence infrastructure.