Foxconn, the world’s leading contract electronics manufacturer, has shattered expectations by posting its highest-ever revenue for the fourth quarter of 2024, bolstered by robust demand for artificial intelligence (AI) servers. This achievement underscores the company’s strategic positioning in the burgeoning AI and cloud computing markets.
Foxconn, formally known as Hon Hai Precision Industry, revealed on Sunday, January 5, that its revenue surged 15.2% year-on-year to reach NT$2.13 trillion (US$64.72 billion). This figure outstripped the NT$2.1 trillion projected by the LSEG SmartEstimate, which prioritizes predictions from the most accurate analysts.
The extraordinary growth in Foxconn’s revenue is largely attributed to the burgeoning demand for AI servers. This sector has become a crucial growth engine for the company, significantly boosting its cloud and networking products division. Foxconn’s notable clientele in this segment includes AI chip powerhouse Nvidia, which has been a key driver of demand.
“Robust AI server demand led to strong revenue growth for our cloud and networking products division,” the company stated, highlighting the strategic importance of this sector amid a global push towards AI-driven technologies.
While the AI sector surged, Foxconn reported a more modest performance in its smart consumer electronics division, which includes iPhones—one of its flagship product lines as Apple’s largest assembler. The company described the year-on-year growth in this division as “roughly flattish,” reflecting a stabilization in consumer demand for high-end smartphones.
Foxconn also reported remarkable performance for December alone, with revenue reaching NT$654.8 billion, marking a 42.3% increase compared to the same period the previous year. This figure represents the second-highest monthly revenue in the company’s history for December, further cementing its robust finish to 2024.
Looking ahead, Foxconn acknowledged that its operations are entering the “traditional off-season” in the first quarter of 2025. Despite the seasonal downturn, the company expects its performance to align with the average levels seen over the past five years. Moreover, when compared to the first quarter of 2024, significant growth is anticipated.
“In the first quarter of 2025, overall operations have gradually entered the traditional off-season,” Foxconn noted. “Even with record high revenue in the fourth quarter of 2024, the sequential performance of the first quarter will reach roughly similar levels that are average to the past five years; compared with a year ago, it should show significant growth.”
Foxconn’s stellar financial performance has been reflected in its stock market trajectory. In 2024, the company’s shares surged by an impressive 76%, vastly outperforming the broader Taiwan market, which saw a 28.5% rise. However, ahead of the revenue announcement, Foxconn’s shares closed down 0.8% on Friday, slightly underperforming the benchmark index, which posted a 0.3% gain.
Foxconn’s success in 2024 is a testament to its strategic pivot towards high-growth sectors such as AI and cloud computing. By capitalizing on the rising demand for AI servers and strengthening its partnerships with industry leaders like Nvidia, Foxconn has positioned itself as a critical player in the global technology supply chain.
This shift is particularly timely as the global technology landscape evolves, with AI and cloud services playing an increasingly central role in shaping future innovations. The company’s focus on these areas is likely to yield sustained growth, despite the cyclical nature of the consumer electronics market.
Foxconn has scheduled the release of its full fourth-quarter earnings report for March 14, 2025. This report will provide deeper insights into the company’s financial health and operational strategies, offering stakeholders a clearer picture of its future trajectory.
