Foxconn, the world’s leading contract electronics manufacturer, achieved record revenue in the fourth quarter, driven by strong demand for AI servers. The company’s earnings reached T$2.13 trillion ($64.72 billion), marking a 15.2% increase compared to the previous year and surpassing analyst expectations. Growth was particularly notable in Foxconn’s cloud and networking products division, highlighting the rising importance of AI technology. While sales of smart consumer electronics, like iPhones, remained stable year-on-year, December revenue alone soared by 42.3%. Looking ahead, Foxconn anticipates a typical seasonal slowdown in the first quarter of 2025 but expects significant year-over-year growth. The company is set to release its complete fourth-quarter earnings on March 14.
Foxconn Reports Record Revenue Driven by AI Demand
Foxconn, the largest contract electronics manufacturer in the world, has announced a record revenue for the fourth quarter of 2024, exceeding Market expectations. The company credits strong demand for artificial intelligence (AI) servers as a significant factor in this impressive performance.
In a statement released on Sunday, Foxconn revealed its revenue reached T$2.13 trillion (approximately $64.72 billion), representing a 15.2% increase compared to the same quarter last year. This figure surpassed the forecast of T$2.1 trillion, which analysts had estimated using LSEG SmartEstimate, a tool that takes into account the reliability of different analysts’ predictions.
Foxconn highlighted that its cloud and networking products division experienced robust growth, largely due to increased demand for AI servers. However, sales in the smart consumer electronics sector, which includes Apple iPhones, showed stagnant growth year-on-year.
For December alone, Foxconn earned T$654.8 billion, up 42.3% from the previous year and marking the second-highest revenue for the month in the company’s history. Looking ahead, Foxconn stated that it expects the first quarter of 2025 to enter the traditional off-season, although year-on-year growth is anticipated to be significant compared to the previous year.
After a stellar performance in 2024, Foxconn’s shares rose by 76% throughout the year, far outperforming the broader Taiwan Market‘s 28.5% increase. However, shares fell by 0.8% prior to the revenue announcement.
The full fourth-quarter earnings report is set to be released on March 14.
Tags: Foxconn, AI revenue, contract electronics, Taiwan business news, Apple supplier
What is Foxconn’s recent financial performance?
Foxconn reported record revenue for the fourth quarter, beating estimates. This increase was largely driven by strong demand for AI products.
Why did Foxconn’s revenue increase?
The surge in revenue is mainly due to rising demand for artificial intelligence technology. Many companies are investing in AI, which has boosted Foxconn’s sales.
How does Foxconn’s performance affect the tech industry?
Foxconn’s strong results suggest that the tech industry is recovering, especially in areas related to AI. This could indicate growing opportunities for other tech companies as well.
What are analysts saying about Foxconn’s future?
Analysts are optimistic about Foxconn’s future due to the ongoing demand for AI devices. They expect the company to continue growing, especially as AI technology advances.
What are the implications for investors?
Investors might see Foxconn as a solid choice because of its strong revenue growth. The company’s focus on AI could make it a key player in the tech Market moving forward.