Foxconn's Record Q4 Revenue Driven by AI Server Demand, Boosting Semiconductor Stocks

Demand for AI servers sees Foxconn fly and suppliers spike

Record quarterly revenue at contract manufacturing giant suggests strong demand for hardware of all sorts Foxconn has singled out AI servers as a reason for its record revenue, and its suppliers' share prices surged on the news. The contract manufacturer, formally known as Hon Hai Precision Industry Co, posted its December 2024 results on Sunday with the first-mentioned figure being unaudited consolidated revenue of NT$654.8 billion ($20 billion) - which represented a 2.64 percent month-over-month dip and a 42.31 percent year-on-year surge. The company also compiled quarterly results, with Q4 bringing NT$2.13 billion ($65 billion) of revenue - up 15.03 percent quarter-on-quarter and 15.17 percent year-on-year, and a record quarterly figure. All four of Foxconn's segments - cloud and networking, computing products, smart consumer electronics, and components - experienced "strong growth", but only AI servers were mentioned as a source of the revenue increase. Investors were warned that Q1 will be slower, as is usually the case at this time of year. But the company forecast "significant growth" compared to last year's numbers. This matters because Foxconn is the world's top contractor manufacturer for electronics, and counts Apple, HP, and Dell among its consumer-facing clientele, and deals directly with hyperscalers who rely on the company to produce their servers and other infrastructure. If Foxconn revenue is surging, that's therefore welcome news for the whole tech ecosystem because it means consumers and corporates are spending. As noted by CNBC, the day after Foxconn announced its results share prices for several semiconductor vendors popped a point or two - or three points in the case of Nvidia. Correlation is of course not the same as causation, so perhaps share price jumps at companies in Foxconn's orbit could instead be attributed to anticipation of news at the annual CES electronics souk that's under way in Las Vegas this week. Or perhaps markets are excited by Foxconn's mention of strong demand for AI servers, which would of course also mean demand for memory, GPUs, CPUs, networks, and storage. Lots of them, for months to come - indicating AI continues to drive plenty of spending. The price of Foxconn's own shares have risen by around five percent since its revenue announcement. A full and formal results announcement for Q4 2024 is due in March, when we'll learn if all that revenue also delivered improved profits. ®

Foxconn shares climb following record Q4 revenue By Investing.com

The world's largest contract electronics manufacturer reported on Sunday a 15.2% increase in revenue for Q4 2024, reaching T$2.13 trillion ($64.72 billion). This slightly surpassed the T$2.1 trillion median forecast, driven primarily by robust demand for artificial intelligence (AI) servers. The Taiwanese firm's shares rose 3% to T$187.50 on Monday, according to Yahoo Finance data. Foxconn's cloud and networking products division, which counts AI chipmaker NVIDIA Corporation (NASDAQ:NVDA) among its clients, experienced significant growth due to the surge in AI server demand. In contrast, the smart consumer electronics segment, including Apple Inc's (NASDAQ:AAPL) iPhones, saw flat year-on-year growth. December revenue alone reached T$654.8 billion, marking a 42.3% increase from the previous year and the second-highest level for the month, the company announced. Looking ahead, Foxconn anticipates that first-quarter performance will align with historical averages but expects significant year-on-year growth. Analysts attribute Foxconn's impressive performance to its strategic positioning in the AI server market, which has experienced unprecedented growth. The company's ability to capitalize on this demand has reinforced investor confidence, contributing to the recent uptick in share prices.

Nvidia, TSMC, Other AI Chip Stocks Surge as Foxconn Posts Record Revenue

Foxconn, whose formal name is Hon Hai Precision Industry, said Sunday that its fourth-quarter revenue gained 15% year-over-year to 2.132 trillion New Taiwan dollars ($65.09 billion). Its December sales rose 42% to NT$654.83 billion. "With strong demand from AI servers, revenue experienced strong growth YoY," the company said. Hon Hai shares closed up 2% in Taiwanese trading. Foxconn's buoyant results are helping lift shares of AI chip companies early Monday. Nvidia shares are trading up 2% premarket before Chief Executive Officer (CEO) Jensen Huang gives the keynote address at the CES trade show in Las Vegas. Those of rival Advanced Micro Devices (AMD) and Micron Technology (MU) are up 3% and 4%, respectively. In addition, U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (TSM) and ASML Holding (ASML), the Dutch company that makes semiconductor-making machinery, are up 4.5% and 6%, respectively.

Foxconn Posts Highest Ever Fourth-Quarter Revenue on Strong AI Demand

Taiwan's Foxconn raked in a record amount of revenue for the fourth quarter, helped by robust demand for servers to power burgeoning artificial-intelligence technologies. Foxconn, an assembler of Apple and Nvidia products formally known as Hon Hai Precision Industry, said Sunday that quarterly revenue rose 15% on the year to 2.132 trillion New Taiwan dollars, equivalent to US$64.75 billion. That marked its highest-ever fourth-quarter revenue and beat a FactSet-compiled estimate of NT$2.07 trillion. The company also forecast "significant growth" in first-quarter sales. Its shares opened higher on Monday in Taipei, last up 2.8% at NT$186.00. Foxconn's December sales rose 42% to NT$654.83 billion, also beating FactSet-compiled estimates, while full-year sales rose 11% to a record NT$6.860 trillion. The Taiwan-listed company said it recorded annual sales growth in almost all of its major segments, driven by demand for AI servers. The expansion of its auto-related business, and strong demand for new computing products, also boosted sales. Annual and quarterly sales at Foxconn's smart consumer electronics segment, which includes smartphones, TVs, game consoles and others, slipped slightly, which it attributed to a high base effect a year earlier caused by delayed orders in 2022. The company is expected to post full fourth-quarter earnings results in mid-March.

Nvidia stock gains on AI demand optimism By Investing.com

Foxconn, which is also the world's largest manufacturer of Apple Inc (NASDAQ:AAPL).'s iPhones, reported a 15% revenue increase, surpassing expectations due to continued demand for AI infrastructure. The company's December revenue surged by 42%, contributing to an overall revenue of NT$2.13 trillion ($64.6 billion) for the quarter. This robust performance led to a 3.6% rise in Foxconn's shares in Taipei, marking their most significant intraday gain in roughly two weeks. The upbeat results from Foxconn have provided a lift to semiconductor stocks, with Nvidia rising by 2.6%, AMD by 3%, Micron by 5.8%, and Broadcom by 1.1%. The demand for AI infrastructure, driven by substantial investments in data center servers by major U.S. tech firms such as Alphabet (NASDAQ:GOOGL) Inc. and Microsoft Corp (NASDAQ:MSFT)., has been a boon for Taiwan's AI hardware suppliers, including Foxconn. Despite the positive momentum, there is a sense of caution among investors about the sustainability of the expansion. Nevertheless, Foxconn's forecast for "significant" sales growth in the first quarter has contributed to the optimistic sentiment in the semiconductor sector. The semiconductor industry's performance is closely watched, as it is a bellwether for the broader tech sector and a key indicator of global economic health. The recent gains in semiconductor stocks suggest that investors are currently focusing on the potential of AI and data center growth to drive demand, despite underlying concerns about the market's future trajectory.

Global chip stocks climb as Foxconn's bumper results show continuation of the AI boom

Global semiconductor stocks climbed on Monday after contract electronics giant Foxconn announced record fourth-quarter revenues, suggesting the artificial intelligence boom has far more room to run. Hon Hai Precision Industry, which does business as Foxconn internationally, said in a Sunday statement that the company's fourth-quarter revenue totaled 2.1 trillion New Taiwan dollars ($63.9 billion), growing 15% year-over-year. Foxconn -- which is a supplier to Apple -- also set a record, posting the highest fourth-quarter revenue ever in company history, according to the statement. The firm's bumper revenue performance was driven by growth in its cloud and networking products -- which includes AI servers like those designed by the likes of chipmaker Nvidia -- and components and other products segments. Computing products and smart consumer electronics -- which numbers iPhone and other smartphones -- saw "slight declines," Foxconn said.

Foxconn beats estimates with record fourth-quarter revenue on AI demand

Taiwan's Foxconn, the world's largest contract electronics maker, beat expectations to post its highest-ever revenue for the fourth quarter on continued strong demand for artificial intelligence (AI) servers. Revenue for Apple's biggest iPhone assembler jumped 15.2% to 2.13 trillion New Taiwan dollars ($64.72 billion), Foxconn said in a statement on Sunday. It was also ahead of a 2.1 trillion New Taiwan dollar LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate. Robust AI server demand led to strong revenue growth for its cloud and networking products division, said Foxconn, whose customers include AI chip firm Nvidia. For smart consumer electronics, which includes iPhones, there was "roughly flattish" year-on-year growth, it said. Total revenue in December alone reached 654.8 billion New Taiwan dollars, up 42.3% year on year and the second-highest ever level for the month. "In the first quarter of 2025, overall operations have gradually entered the traditional off-season," Foxconn said of its outlook for the current quarter. "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." The company, formally called Hon Hai Precision Industry, did not elaborate. It does not provide numerical forecasts. Foxconn's shares jumped 76% last year, outperforming by far a 28.5% rise for the broader Taiwan market. They closed down 0.8% on Friday ahead of the revenue data release, compared with a 0.3% gain for the benchmark index. The company will report its full fourth-quarter earnings on March 14.

Nvidia-Partner Hon Hai's Shares Climb After AI Spurs Sales Beat

(Bloomberg) -- Hon Hai Precision Industry Co. reported faster-than-expected 15% revenue growth after the server assembly partner to Nvidia Corp. rode sustained demand for AI infrastructure. Hon Hai, also the world's largest maker of Apple Inc. iPhones, reported NT$2.13 trillion ($64.6 billion) of revenue for the past three months. December revenue rose 42%, helping the company known as Foxconn beat analyst expectations. It also forecast "significant" sales growth for the first quarter, helping its shares rise as much as 3.6% in Taipei, their biggest intraday gain in about two weeks. The company and other Taiwan AI hardware suppliers have enjoyed a boost from massive spending on servers for data centers by the biggest US tech firms like Alphabet Inc. and Microsoft Corp. But the lack of a compelling use case for AI so far has been making investors nervous about when the expansion might slow. Goldman Sachs analysts revised up their 2024 earnings estimate by 1% based on higher-than-expected December revenue. They also raised revenue estimates for this year and the following two years, citing higher AI server revenue. "The sequential revenue growth in Cloud supports our positive view on the next generation rack-level AI servers shipment ramp-up, and general servers and networking equipment demand recovery," Goldman Sachs analysts wrote. Hon Hai expects revenue from its cloud business, which includes AI servers, to match sales from its iPhone-making division in 2025. Still, Citi analyst Carrie Liu warned in a note that the stock could experience near-term drag based on a first-quarter outlook from the company that seemed less than market estimates. The AI market is important for Hon Hai's effort to diversify its business away from Apple, whose iPhones are seeing muted growth. Apple has historically accounted for over half of the Taiwanese company's sales. Hon Hai also aims to break into the electric vehicle market, though that venture has yet to have any meaningful effect on its earnings. The company reached out to Renault SA about a tie-up with Nissan Motor Co., which Renault owns 36% of. For now, that pursuit is on hold as Nissan and Honda Motor Co. negotiate a merger, Bloomberg News reported.

Apple Supplier Foxconn Posts Record Revenue, Rides High On AI Server Demand And Nvidia Partnership - NVIDIA (NASDAQ:NVDA)

Foxconn unaudited Q4 revenue hits record high. December 2024 revenue was 2.64% as compared to November. Apple Inc. AAPL and Nvidia Corp. NVDA supplier Foxconn, also known as Hon Hai Technology, posted record revenue in the fourth quarter driven by higher cloud and networking products revenue and strong demand from AI servers. What Happened: According to the company's unaudited monthly revenue report for December, Foxconn's fourth-quarter revenue rose 15.17% annually and 15.03% sequentially to a record high of NT$2,132.3 billion or $64.83 billion. "Cloud and networking products, computing products, and components and other products showed strong year-on-year growth, while smart consumer electronics remained flattish," according to the company. The cumulative revenue for the full year rose by 11.37% year-on-year to NT$6,859.9 billion or $208.59 billion. Whereas, December's monthly revenue rose by 42.31% year-on-year to NT$654.8 billion or $19.9 billion. Although it was down 2.64% on a monthly basis, as compared to November. See Also: Nvidia's New Superchip Delivers 8,470 Times The Computing Performance Of Supercomputer That Jensen Huang Donated To OpenAI Why It Matters: Foxconn, renowned for manufacturing Apple products, is capitalizing on the burgeoning artificial intelligence market. The company has entered the server production sector, supplying crucial GB200 chips to Nvidia. To further solidify its position, Foxconn is establishing the world's largest manufacturing facility for these AI servers in Mexico. This strategic move aligns with Foxconn's vision to leverage the growing AI market. During the company's annual tech day in Taipei in October, Chairman Young Liu emphasized Foxconn's cutting-edge liquid cooling and heat dissipation technologies, essential for supporting the demanding infrastructure of GB200 servers. The significance of the company's partnership with Nvidia was further highlighted by Benjamin Ting, Foxconn's senior vice president for cloud enterprise solutions. At the same event, Ting confirmed the construction of the largest GB200 production facility globally, although he declined to specify the location. He and Nvidia's vice president for AI and robotics, Deepu Talla, jointly emphasized the strong market demand for Nvidia's Blackwell platform. Read Next: Apple Supplier Foxconn To Build World's Largest Nvidia Superchip Factory Amid Soaring AI Demand Photo courtesy: Flickr Market News and Data brought to you by Benzinga APIs

IPhone Maker Hon Hai Clinches Sales Beat on Strong AI Demand

Nvidia Corp. and Apple Inc. assembly partner Hon Hai Precision Industry Co. reported better-than-expected sales growth last quarter as the AI infrastructure buildout continued apace. Hon Hai, also known as Foxconn, on Sunday said its revenue over the past three months was NT$2.13 trillion ($64.6 billion), up 15%, exceeding analyst expectations for a 13% rise. December brought in NT$654.83 billion, up 42%.

Chip firms surge on signs of strong AI-led demand

(Reuters) - Shares of chipmakers jumped on Monday as Microsoft's plan to invest $80 billion in AI-enabled data centers in fiscal 2025 spurred bets that semiconductor demand would remain strong. Micron was the biggest gainer among semiconductor stocks with a 10% rise, while chip-making equipment companies like Applied Materials, Lam Research and KLA Corp rose between 5.3% and 6.1%. The Philadelphia Semiconductor Index firmed 4% and hit its highest since mid-October. Citigroup said Microsoft's spending plan although in line with analysts' estimates was a "modest positive" update as it removed the risk of a drop in capital expenditure. "AI data centers are very chip hungry, that's why you have people running towards the chip sector right now," said Michael Matousek, head trader at U.S. Global Investors. Contract manufacturer Foxconn's record revenue for the fourth quarter on the back of strong demand for AI servers also added to the overall euphoria in the chip sector. Nvidia, a Foxconn customer, added 4.6%. The AI bellwether's CEO, Jensen Huang, is set to deliver a keynote speech at the CES trade show later in the day. AI server maker Super Micro Computer jumped 9.9%. (Reporting by Medha Singh and Purvi Agarwal in Bengaluru; Editing by Anil D'Silva)