Taiwan’s Tech Titan Soars to New Heights
Foxconn, the world’s largest contract electronics manufacturer, has shattered expectations with its highest-ever revenue for the fourth quarter, driven by insatiable demand for artificial intelligence (AI) servers. The company’s revenue surged 15.2% to a staggering T$2.13 trillion ($64.72 billion), outpacing a T$2.1 trillion forecast by LSEG SmartEstimate.
AI Servers Fuel Cloud and Networking Growth
The robust demand for AI servers has propelled Foxconn’s cloud and networking products division to remarkable revenue growth. As a leading assembler of Apple’s iPhones, Foxconn’s smart consumer electronics segment experienced “roughly flattish” year-on-year growth. However, its total revenue in December alone reached an impressive T$654.8 billion, a 42.3% year-on-year increase and the second-highest ever level for the month.
Outlook for 2025: A Seasonal Slump Ahead?
Looking ahead to the first quarter of 2025, Foxconn anticipates a gradual entry into the traditional off-season. Despite achieving record high revenue in the fourth quarter of 2024, the company expects its sequential performance in the first quarter to be roughly similar to average levels seen over the past five years. Compared to the same period last year, however, Foxconn is confident of showing significant growth.
A Stellar Year for Foxconn’s Shares
Foxconn’s shares have been on a tear, soaring 76% last year and outperforming the broader Taiwan market’s 28.5% rise. Although the company’s shares dipped 0.8% on Friday ahead of the revenue data release, they are poised for further growth. Foxconn will report its full fourth-quarter earnings on March 14.
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