Nvidia’s Contract Manufacturer Foxconn Remains Bullish on AI-Fueled Demand

Taiwan’s Foxconn, the world’s largest electronics manufacturer and a key supplier for Nvidia and Apple, has expressed strong optimism about the growing global demand for artificial intelligence (AI) products. The company believes that AI will continue to be a major driver of its growth into 2026, showing no signs of slowing down. 

Foxconn Chairman Young Liu said during an earnings call that AI will play an even greater role in the company’s operations in the coming year. He described the AI market as still being in its early stages, noting that what is happening now is just the beginning of a much larger technological shift. Liu added that while the company is optimistic, it will still watch global geopolitical and currency issues carefully. 

The company is preparing to make a major announcement next week at its annual tech day in Taipei, where it hinted at a partnership or collaboration with OpenAI, the creator of ChatGPT. Although Liu did not share any details, this move could strengthen Foxconn’s position in the rapidly growing AI industry. OpenAI has not yet commented on the upcoming event. 

Foxconn’s strong position in AI manufacturing has already started to show results. For the second quarter in a row, the company’s cloud and networking business, which includes AI servers, earned more revenue than its smart consumer electronics division, which produces iPhones. This shift highlights how AI-related products are becoming a key part of Foxconn’s success. 

In its third-quarter financial report, Foxconn posted a 17 percent rise in profit, reaching T$57.67 billion, or about $1.89 billion. This figure beat market expectations and was mainly driven by the growing demand for AI servers used by companies like Amazon, Microsoft, and Google to power their data centers. 

The company expects to see even stronger performance in the fourth quarter, with continued revenue growth both year-on-year and quarter-on-quarter. Although Foxconn did not provide specific financial figures, it maintained its positive guidance from earlier in the year. 

Some analysts have compared the current AI investment boom to the dotcom bubble of the early 2000s, warning of a possible market correction. However, Liu dismissed these concerns, saying the AI industry is just beginning to take shape and still has a long way to go. 

In addition to AI, Foxconn is also expanding into electric vehicle manufacturing, although this venture has faced a few setbacks. The company recently sold a car factory in Ohio for $375 million after earlier challenges in EV production. 

Despite these hurdles, Foxconn’s shares have risen 36 percent so far in 2025, outperforming the broader Taiwan stock index. With strong profits, new AI opportunities, and an upcoming OpenAI announcement, Foxconn appears confident that its AI-driven momentum will continue well into 2026. 

Tech companies, such as D-Wave Quantum Inc. (NYSE: QBTS), have generally fared well over the year as the race for tech dominance around the world reaches unprecedented levels. The appetite for innovative products in this industry has led countries to implement supportive policies and investors have followed suit. 

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS 

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