Taiwan’s Foxconn, the world’s largest contract electronics maker, reported record third-quarter revenue driven by rising demand for artificial intelligence (AI) products, though the figure fell short of market expectations.

Revenue for the key supplier to Apple and Nvidia grew 11 percent year-on-year to T$2.057 trillion ($67.71 billion) in the July–September period, the company said in a statement on Sunday.

The result was below the T$2.134 trillion projected in the LSEG SmartEstimate but, according to Foxconn, still “better than expected.”

Measured in US dollars, revenue rose 16.1 percent from a year earlier, reflecting the Taiwan dollar’s 8 percent appreciation against the greenback so far this year.

Foxconn, formally known as Hon Hai Precision Industry, said demand for AI servers boosted sales in its cloud and networking division. However, revenue from smart consumer electronics, including iPhones, edged down slightly, affected by currency movements.

September sales reached a record T$837.1 billion, up 14.2 percent year-on-year. The company expects continued sequential growth in the final quarter, supported by expanding AI server shipments and the traditional year-end holiday demand in Western markets.

Foxconn also cautioned that global political and economic uncertainties, along with exchange rate volatility, could weigh on performance. The company will release its third-quarter earnings on 12 November.