Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, reported its highest-ever third-quarter revenue, fueled by surging demand for artificial intelligence (AI) servers.

The company’s revenue soared by 20.2% year-on-year, reaching T$1.85 trillion ($57.3 billion), surpassing both its own forecasts and market expectations.

“The results exceeded our initial growth projections,” Foxconn stated on Saturday.

The revenue figure also surpassed the T$1.79 trillion SmartEstimate by LSEG, which places higher weight on predictions from consistently accurate analysts. Foxconn credited robust AI server demand for driving substantial growth in its cloud and networking products division. The company, which counts AI chipmaker Nvidia (NVDA.O) among its key clients, benefited significantly from the AI boom.

In its smart consumer electronics segment, including iPhones, Foxconn saw strong quarter-on-quarter growth due to new product launches, although year-on-year performance remained flat.

The third quarter typically marks a busy season for Taiwan’s tech companies as they ramp up production of smartphones, tablets, and other electronics for major clients like Apple ahead of the Western holiday season.

For September alone, Foxconn’s revenue reached T$733 billion, marking a 10.9% year-on-year increase—the second-highest level for the month in the company’s history.

“With the peak season ahead in the second half of the year, we expect our operations to gain further momentum,” Foxconn said, expressing optimism about the current quarter. While the company did not provide specific numerical guidance, it noted that its fourth-quarter performance would likely align with market expectations.

Foxconn’s stock has surged 86% year-to-date, significantly outperforming Taiwan’s broader market, which has risen 24%. The company’s shares closed 3.7% higher on Friday, ahead of the revenue announcement, defying the benchmark index’s 0.4% decline.

Foxconn is set to release its full third-quarter earnings report on November 14. Ahead of that, the company will hold its annual Tech Day on October 8-9, where it is expected to unveil new products and partnerships.