AI server demand pushes Foxconn to record fourth-quarter revenue

Strong demand for AI servers set Taiwan’s Foxconn to a record fourth-quarter revenue. In a statement, the company said its revenue rose 15.2% to T$2.13 trillion ($64.72 billion).

According to a Reuters report, this figure outpaced the T$2.1 trillion forecast on LSEG’s SmartEstimate, which centers on accurate analysts’ estimates.

The world’s biggest electronics manufacturer, Foxconn’s strong performance in its cloud and networking products was attributed to the booming AI server market.

The company supplies firms such as Nvidia, a leader in AI chips. However, growth in the smart consumer electronics division, which covers iPhones, remained largely steady compared with last year.

Foxconn expects a slowdown in the first quarter of 2025

Foxconn’s sales hit T$654.8 billion in December, a rise of 42.3% compared to the previous year’s revenue. This was the second-largest monthly figure in the company’s history.

However, Foxconn expects a slowdown in the first quarter of 2025, when it enters the usual off-season. The statement says, “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.”

Formerly known as Hon Hai Precision Industry, the company did not provide details on forecasts.

Last year, the company’s shares shot up 76% compared with 28.5% for Taiwan’s overall stock market. Ahead of the revenue announcement, Foxconn shares fell 0.8%, while Taiwan’s benchmark index rose 0.3% on Friday.

The complete fourth-quarter earnings report will be released by the company on March 14.