Foxconn beats estimates with record fourth-quarter revenue on AI demand.

Foxconn Reports Record-Breaking Q4 Revenue Fueled by AI Server Demand


Taiwan's Foxconn (Hon Hai Precision Industry), the world’s largest contract electronics manufacturer, has posted its highest-ever revenue for the fourth quarter, driven by robust demand for artificial intelligence (AI) servers. The company’s revenue surged 15.2% year-on-year to T$2.13 trillion ($64.72 billion), surpassing market expectations, including a T$2.1 trillion forecast from the LSEG SmartEstimate.

AI Servers Drive Growth

Foxconn credited the impressive revenue growth to strong demand for AI servers, a segment that includes clients like Nvidia, the leading AI chipmaker. This growth was particularly evident in its cloud and networking products division. As the global AI landscape continues to expand, the demand for high-performance servers capable of supporting complex AI workloads has become a significant growth driver for Foxconn.

Despite the booming AI server business, Foxconn reported "roughly flattish" year-on-year growth for its smart consumer electronics segment, which includes its key role as the largest assembler of Apple iPhones.

December Revenue Hits New Highs

The company’s total revenue for December 2024 reached T$654.8 billion, a 42.3% increase from the same period the previous year and the second-highest figure for the month in Foxconn’s history. This exceptional performance capped off a record-breaking fourth quarter for the electronics giant.

Outlook for Q1 2025

Looking ahead, Foxconn noted that the first quarter of 2025 has entered the traditional off-season for its operations. However, the company expects its Q1 performance to remain consistent with average levels from the past five years while showing significant growth compared to Q1 2024.

"In the first quarter of 2025, overall operations have gradually entered the traditional off-season. Even with record-high revenue in the fourth quarter of 2024, the sequential performance of the first quarter will reach roughly similar levels that are average to the past five years; compared with a year ago, it should show significant growth," the company stated.

Stock Market Performance

Foxconn’s shares surged 76% in 2024, far outpacing the broader Taiwan market’s 28.5% rise. Despite this impressive growth, its stock closed down 0.8% on Friday, just before the revenue announcement, compared to a 0.3% gain in the benchmark index.

Earnings Report on the Horizon

Foxconn is set to release its full fourth-quarter earnings on March 14, where investors and analysts will be keen to dive deeper into the company’s performance and outlook.

A Growing AI Opportunity

With a global shift toward AI applications and the increasing demand for cloud and networking solutions, Foxconn is positioning itself as a key player in the AI revolution. Its strong partnerships with industry leaders like Nvidia and its robust infrastructure have allowed it to capitalize on the surging AI market.

As Foxconn continues to leverage opportunities in AI and other emerging technologies, it remains a critical player not only in the electronics manufacturing sector but also in shaping the future of technological innovation.







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