Foxconn Surpasses Expectations with Record-Setting Revenue in Q4, Fueled by Booming AI Demand

In an impressive display of financial resilience, Taiwan-based Foxconn, officially known as Hon Hai Precision Industry, has shattered expectations by registering its highest-ever revenue report for the fourth quarter of 2024. The company, renowned as the world's largest contract electronics manufacturer, notably also serves as the principal assembler for Apple's iPhones.

During this period, Foxconn announced that its revenue reached an astounding T$2.13 trillion (approximately $64.72 billion), marking a 15.2% increase from previous figures. This growth comfortably exceeded the T$2.1 trillion benchmark anticipated by LSEG SmartEstimate, which prioritizes projections from historically accurate analysts.

A significant portion of this surge can be attributed to the heightened demand for artificial intelligence (AI) servers, which catalyzed robust revenue inflows particularly within its cloud and networking products division. Notably, Foxconn lists powerhouse AI chip producer Nvidia among its distinguished clientele, further underscoring its pivotal role in the tech industry.

Despite the significant strides in industrial and cloud computing solutions, Foxconn reported that the revenue from smart consumer electronics, which includes devices like the iPhone, remained "roughly flattish" compared to the previous year. However, December 2024 alone saw a remarkable 42.3% increase in total revenue, reaching T$654.8 billion and securing its position as the second highest-ever for the company in that month.

Looking forward, Foxconn has prepared its stakeholders for a traditional slow period in the first quarter of 2025, yet it reassured them of a performance indicative of significant year-on-year growth and stability consistent with the past five-year average. This outlook is particularly noteworthy given the typically cyclical nature of the electronics manufacturing sector.

Investor reactions have been palpably positive, with Foxconn's shares escalating by a striking 76% last year, vastly outperforming the broader Taiwan market's 28.5% increase. However, shares mildly dipped by 0.8% on the trading day preceding this announcement, a minor retraction when contrasted with the broader market's 0.3% rise.

As the market eagerly anticipates the full earnings report scheduled for release on March 14, 2025, Foxconn stands as a testament to the robust demand and growing dependence on high-tech AI solutions driving the tech industry forward.

In summary, Foxconn's record-breaking quarter not only highlights its dominant position in the global electronics market but also underscores the ever-growing importance of AI technology in shaping the future of global industries.