Nvidia stock NVDA ticked higher on Monday after Foxconn reported its strongest-ever monthly revenue, providing a fresh indication of demand for AI infrastructure and consumer electronics heading into the final quarter.
Foxconn, a major assembler of Apple products and an important builder of Nvidia-based AI servers, reported September revenue of 36.5 billion,or NT$1.16 trillion.
Revenue rose 25.7% from August and 38.4% from a year earlier.
The monthly figure was Foxconn’s first above NT$1 trillion and exceeded its previous record of NT$946.5 billion set in July.
In the July September quarter, the company posted revenue of NT$3.03 trillion, beating the LSEG SmartEstimate of NT$2.83 trillion.
Foxconn revenue highlights AI demand
Foxconn’s results are closely watched by Nvidia investors because the Taiwanese manufacturer builds and integrates AI server systems based on Nvidia’s accelerated-computing platforms.
The company manufactures systems including GB200 and GB300 NVL72 racks, while also handling power delivery, liquid cooling, mechanical systems and networking integration.
These systems are more complex than conventional servers because of the computing requirements of artificial intelligence workloads.
The latest revenue figures therefore provide a fresh indication of activity across the AI infrastructure supply chain as companies continue investing in computing capacity.
Nvidia and Foxconn expanded their partnership in October 2023, when the companies announced plans to develop AI factories using Nvidia’s computing hardware and software.
The partnership has become increasingly important as demand for AI infrastructure has expanded beyond individual chips to complete systems that combine computing, networking, power and cooling capabilities.
BNP Paribas raises Nvidia target
Nvidia also received support from BNP Paribas, which continues to view the chipmaker as its preferred semiconductor stock.
The brokerage raised its Nvidia price target to $345 from $285, citing the company’s broad portfolio of AI hardware, CUDA software and networking products.
BNP Paribas expects Nvidia to maintain a leading position in AI computing as workloads increasingly shift towards inference.
Inference refers to the process of running AI models after they have been trained.
The brokerage also expects Nvidia to maintain gross margins above 70% despite increasing competition from custom chips and other semiconductor companies.
The view highlights the importance of Nvidia’s broader AI platform rather than its position as a chip supplier alone.
Its hardware, software and networking products remain central to the company’s competitive position, according to BNP Paribas.
Bernstein maintains Nvidia outlook
Bernstein also maintained its positive view on Nvidia, reiterating an outperform rating and a $400 price target.
The brokerage said the data centre opportunity remains substantial, reinforcing the broader investment case around Nvidia’s role in AI infrastructure.
The company’s position in the AI computing market comes as demand for increasingly complex data centre systems continues to drive investment across the semiconductor and server supply chain.
Foxconn’s record September revenue provides another data point for investors assessing the strength of that demand.
Its monthly revenue increase also points to continued activity across both AI infrastructure and consumer electronics markets.
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