Foxconn, the leading contract electronics manufacturer, achieved record revenue in the fourth quarter, exceeding analysts’ expectations considerably, fueled mainly by strong interest in artificial intelligence (AI) servers. The company assembled for Apple and reported a robust performance with a year-on-year revenue increase of 15.2%, totaling T$2.13 trillion (around $64.72 billion), surpassing the expected T$2.1 trillion.

The company’s success is notably attributed to growth in its cloud and networking division, benefiting from strong demand for AI servers from major customers like Nvidia. However, Foxconn’s smart consumer electronics division, which encompasses iPhone production, reported only marginal year-on-year growth, suggesting a stabilization in the mobile device market.

Fourth Quarter Performance and Projections

Foxconn’s revenue in December reached T$654.8 billion, reflecting a staggering 42.3% year-on-year growth. Despite this impressive finish to 2024, Foxconn foresees a potential slowdown in Q1 of 2025 as seasonal operations traditionally slow down. The company asserted that while Q1 performance would align with the average of the last five years, it would still represent considerable growth compared to the prior year.

Market and Stock Reaction

Foxconn’s stock surged by 76% during 2024, greatly outperforming the broader Taiwan market’s 28.5% rise. However, despite the remarkable revenue increase, the stock fell by 0.8% on Friday, before the revenue data was disclosed.

For insights into Foxconn’s financial performance and further market analysis, consider exploring available resources on Entreprenerdly.com.