Foxconn's AI servers now outsell everything else it makes.

Transcript

The company that assembles your iPhone now makes most of its money building AI servers. Foxconn's cloud and networking division hit fifty one percent of revenue last quarter. That is the first time it has ever crossed half the business. The iPhone side? Twenty nine percent. But here is the number actually worth keeping. Revenue grew forty one percent. Operating profit grew sixty eight. That gap is the whole story, because it means AI racks earn more per unit of factory effort than phones do. Now, keep this in perspective. Net margin is two point three seven percent. Foxconn assembles what Nvidia designs, and almost all the value in a rack full of Blackwell silicon belongs to whoever made the silicon. And the ceiling on next year isn't anything Foxconn controls. Chairman Young Liu named it directly: CoWoS advanced packaging, at TSMC. Foxconn can build racks as fast as its factories allow and it will still ship exactly as many as TSMC's packaging lines permit. That is a supply forecast from the guy who can see where the queue stops moving.