Shares of Foxconn (SS:601138), known formally as Hon Hai Precision Industry Co Ltd (TW:2317), soared on Monday following the announcement of record fourth-quarter revenues.

The global leader in contract electronics manufacturing reported a remarkable 15.2% increase in Q4 2024 revenues, totaling T$2.13 trillion ($64.68 billion), surpassing a median forecast of T$2.1 trillion, largely propelled by strong demand for artificial intelligence (AI) servers.

Foxconn’s cloud and networking products division, a supplier of AI server components to high-profile clients such as NVIDIA Corporation (NASDAQ:NVDA), has experienced notable growth. This is in stark contrast to the smart consumer electronics segment, including Apple Inc.’s (NASDAQ:AAPL) iPhones, which exhibited flat yearly performance.

Revenue Achievements for December 2024

• Total revenue for December: T$654.8 billion
• Year-on-year growth recorded: 42.3%
• Marking the second-highest December revenue ever

Foxconn anticipates that its performance in the first quarter of 2025 will align with historical averages while forecasting significant year-on-year growth due to ongoing demand for AI servers.

Strategic Edge in the AI Server Market

Foxconn’s capacity to harness unprecedented demand for AI server technology has heightened investor confidence, evident in its stock rising by 3% to T$187.50 on Monday. Analysts attribute this victory to the company’s strategic planning and adaptability in leveraging emerging technological advancements.

2025 Projections

As Foxconn plans sustained advancements within the AI server sector, its strategic investments position the company favorably for expansive future opportunities. The emphasis on innovation and diversification should continue to drive shareholder value increase.