Foxconn Stays Bullish After Robust Quarter, Cautious About AI Data-Center Outlook

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 12, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

Foxconn reported third-quarter net profit of 77.52 billion New Taiwan dollars, a 34% year-over-year increase that exceeded market expectations, while revenue climbed 46% to 3.016 trillion New Taiwan dollars. Chairman Young Liu stated on Thursday that artificial intelligence demand will likely remain the company’s primary revenue driver next year, although he noted that component supply constraints and geopolitical volatility introduce uncertainty. The company projects high double-digit growth in AI server-rack shipments as it expands its global manufacturing footprint and customer base. Liu also indicated that the business impact of the recent U.S. congressional elections will likely be limited, though longer-term effects remain unclear pending policy clarification.

Background

• Cloud and networking products, which include AI servers for clients like Nvidia, now account for more than half of Foxconn’s total revenue.
• Liu predicted that this product category could contribute over 60% of top-line revenue within three to five years as cloud providers increase capital expenditure.
• Foxconn shares have lost approximately one-fifth of their value since a June peak amid investor concerns about the sustainability of Big Tech investments in AI data centers.
• Morgan Stanley supported Foxconn’s growth outlook but warned that potential delays in U.S. data-center construction could create temporary supply chain disruptions in 2028.

Read the full article at wsj.com

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