Foxconn, the world's largest contract electronics manufacturer, posted record fourth-quarter revenue, surpassing analysts' expectations, largely driven by strong demand for artificial intelligence (AI) servers. The company, which assembles Apple's iPhones, reported a 15.2% year-on-year increase in revenue to T$2.13 trillion ($64.72 billion), well above the expected T$2.1 trillion, according to LSEG SmartEstimate.

The strong performance was notably fueled by its cloud and networking division, benefiting from continued demand for AI servers, with major customers such as Nvidia. However, its smart consumer electronics division, which includes iPhones, experienced "roughly flattish" year-on-year growth, signaling a stabilizing market for mobile devices.

Quarterly Performance and Outlook

In December, Foxconn's revenue reached T$654.8 billion, reflecting a significant 42.3% year-on-year growth. Despite this strong finish to 2024, Foxconn cautioned that the first quarter of 2025 would likely see a slowdown as operations enter the traditional off-season. The company noted that while first-quarter performance will align with the average of the past five years, it would still show substantial growth compared to the previous year.

Stock Performance and Market Impact

Foxconn's shares surged by 76% in 2024, significantly outperforming the 28.5% rise of the broader Taiwan market. Despite this strong performance, Foxconn's stock closed down 0.8% on Friday ahead of the revenue data release.

For further details on Foxconn's financial performance and other company insights, check out the Financial Growth API