Foxconn's Stock Increases as AI Server Expansion Surpasses iPhone Sales
Third-Quarter Financial Performance: Foxconn reported a 17% increase in third-quarter profit, with net income reaching $1.89 billion and revenue rising 11% year-over-year to $63.5 billion, driven by strong demand for AI servers.
Shift in Revenue Sources: AI servers have become Foxconn's largest business line, accounting for 42% of total revenue, surpassing smart consumer electronics for the second consecutive quarter.
Expansion and Production Strategy: Foxconn is diversifying its production locations by moving some iPhone assembly to India and building new factories in Mexico and Texas for AI server manufacturing, aiming to shorten delivery times.
Market Outlook and Analyst Ratings: Despite a slight drop in stock price, Foxconn has a Moderate Buy consensus among analysts, with an average price target of $20, indicating a potential upside of over 25%.
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