Foxconn's Q4 revenue hits record high, driven by AI demand
What's the story
Foxconn, the world's largest contract electronics manufacturer, has posted a record fourth-quarter revenue of T$2.13 trillion ($64.72 billion).
The impressive financial performance marks a 15.2% increase from earlier and beats the T$2.1 trillion LSEG SmartEstimate forecast.
The company credits the strong growth to robust demand for artificial intelligence (AI) servers and related products.
Revenue drivers
AI server demand boosts Foxconn's cloud and networking division
The spike in demand for AI servers has greatly increased revenue for Foxconn's cloud and networking products division.
The company, which is also known as Hon Hai Precision Industry, counts AI chip firm NVIDIA among its clients.
Compared to this strong growth, the company's smart consumer electronics segment, which includes iPhones, saw "roughly flattish" year-on-year growth.
Revenue surge
December revenue soars
Foxconn's overall revenue for December alone stood at an impressive T$654.8 billion ($19.9 billion), a 42.3% YoY increase and the second-highest ever level for the month.
For the first quarter of 2025, Foxconn expects its performance to be in line with its five-year average, which means it will see significant YoY growth despite entering the traditional off-season of operations.
Stock performance
Shares outperform broader Taiwan market in 2024
In 2024, Foxconn's shares have risen a whopping 76%, far exceeding the broader Taiwan market's 28.5% growth.
However, prior to the revenue data release, the shares closed down 0.8% on Friday.
The company will release its full fourth-quarter earnings on March 14, giving more insight into its financial performance and future projections.