Foxconn Surpasses Expectations with Record Fourth-Quarter Revenue Driven by AI Demand
Taiwan's Foxconn, the world's largest contract electronics manufacturer, has reported its highest-ever revenue for the fourth quarter, thanks to the sustained strong demand for artificial intelligence (AI) servers. The company announced that its revenue surged by 15.2% to T$2.13 trillion ($64.72 billion), surpassing the T$2.1 trillion LSEG SmartEstimate, which places more emphasis on forecasts from consistently accurate analysts.
Foxconn attributed its robust revenue growth to the increasing demand for AI servers, particularly in its cloud and networking products division. The company's clientele includes AI chip firm Nvidia. While revenue from smart consumer electronics, such as iPhones, saw "roughly flattish" year-on-year growth.
In December alone, Foxconn's total revenue reached T$654.8 billion, marking a substantial 42.3% increase compared to the previous year and achieving the second-highest level ever recorded for the month. Looking ahead to the current quarter, Foxconn mentioned that its operations have started to transition into the traditional off-season.
Despite achieving record-high revenue in the fourth quarter of 2024, Foxconn anticipates that the sequential performance in the first quarter of 2025 will be similar to the average levels of the past five years. However, compared to the previous year, the company expects to demonstrate significant growth.
Foxconn, also known as Hon Hai Precision Industry, did not provide specific numerical forecasts for the upcoming period. The company's shares experienced a remarkable 76% surge last year, significantly outperforming the broader Taiwan market, which saw a 28.5% increase. Prior to the revenue data release, Foxconn's shares closed down by 0.8% on Friday, while the benchmark index recorded a 0.3% gain.
Investors and analysts are eagerly awaiting Foxconn's full fourth-quarter earnings report, scheduled to be released on March 14.
Foxconn achieves its highest-ever revenue for the fourth quarter, driven by AI server demand.
Revenue jumps by 15.2% to T$2.13 trillion, surpassing analyst expectations.
Strong growth in cloud and networking products division attributed to robust AI server demand.
Source: REUTERS