TAIPEI, Nov 12, 2025 – Foxconn (Hon Hai Precision Industry), the world’s largest contract electronics manufacturer and a major supplier to Nvidia and Apple, has issued a bullish outlook for artificial intelligence (AI) demand in 2026. The Taiwan-based company also teased an upcoming announcement involving OpenAI at its annual tech day next week.

Foxconn has been benefiting from a surge in demand for AI servers and data center infrastructure, driven by cloud computing giants including Amazon, Microsoft, and Google investing billions in AI research and expansion.

Strong AI Momentum Drives Q3 Results

During an earnings call, Foxconn Chairman Young Liu emphasized that AI will be a major growth driver next year, while noting that the company remains mindful of geopolitical risks and currency fluctuations.

“Generally speaking, judging from what we see now, I am very optimistic about the AI market next year,” Liu said.

Foxconn’s third-quarter revenue from its cloud and networking segment, which includes AI servers, surpassed its revenue from smart consumer electronics, such as iPhones, for the second consecutive quarter.

The company reported net profit of T$57.67 billion ($1.89 billion) for July-September, a 17% rise that beat consensus expectations of T$50.4 billion. This increase was largely fueled by sustained AI server demand.

AI Server Demand to Drive 2026 Growth

Looking ahead, Foxconn expects strong year-on-year revenue growth in Q4, with AI server revenue projected to rise quarter-on-quarter. While the company did not provide specific numerical guidance, it reaffirmed its previously stated outlook for significant annual revenue growth.

The rapid expansion of AI has raised concerns among some analysts about a potential tech bubble reminiscent of the dotcom era, but Liu emphasized that the industry is still in its early stages:

“The development of AI is still just beginning,” he said.

OpenAI Collaboration Teased

At Foxconn’s annual tech day in Taipei, Liu confirmed there would be an announcement related to OpenAI, the company behind ChatGPT, but declined to provide further details. OpenAI has not yet commented on the potential collaboration.

Notably, OpenAI recently signed a $38 billion cloud services deal with Amazon, signaling a growing market for AI infrastructure that companies like Foxconn are eager to support.

Diversification and EV Expansion

Beyond AI, Foxconn continues to explore electric vehicle (EV) production as a long-term growth avenue. The company previously purchased a factory in Lordstown, Ohio, but in August 2025 announced a deal to sell the facility for $375 million, including machinery. EV production remains a strategic, albeit challenging, focus.

Stock Performance

Foxconn shares have surged 36% year-to-date, significantly outperforming the broader Taiwan index (.TWII), which gained 21%. Ahead of the Q3 earnings release, shares closed up 1.8% on Wednesday.

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Summary:

• Foxconn forecasts AI as a key growth driver in 2026.
• Q3 net profit beats market expectations at T$57.67 billion ($1.89B).
• AI server revenue surpasses consumer electronics revenue for second quarter in a row.
• OpenAI announcement expected at Foxconn tech day next week.
• Foxconn shares have soared 36% in 2025, outperforming the Taiwan stock index.