Nvidia supplier Foxconn bullish on AI demand, teases OpenAI announcement

Core Viewpoint - Foxconn expresses a positive outlook on AI-related demand, predicting it will significantly drive growth in 2026 and plans to announce a collaboration with OpenAI next week [1][6]. Group 1: AI Market Outlook - Foxconn's Chairman, Young Liu, indicates that the importance of AI will greatly increase in the coming year, despite concerns about a potential bubble similar to the dotcom era [2][3]. - The company believes that the development of AI is still in its early stages, suggesting long-term growth potential [3]. Group 2: Financial Performance - In Q3, Foxconn's cloud and networking business revenue, which includes AI servers, surpassed that of its smart consumer electronics for the second consecutive quarter [4]. - The company forecasts significant year-on-year revenue growth for Q4, with expectations of quarter-on-quarter increases in AI server revenue [4][5]. - Foxconn reported a net profit of T$57.67 billion ($1.89 billion) for the July-September period, exceeding the consensus estimate of T$50.4 billion [6][7]. Group 3: Future Developments - Foxconn is set to host its annual tech day in Taipei next week, where an announcement related to OpenAI is anticipated [6]. - The company is also exploring expansion into the electric vehicle sector, viewing it as a key future growth area, although this initiative has faced challenges [7].