Demand for AI servers sees Foxconn fly and suppliers come along for the ride
Jan 07, 2025 - theregister.com
Foxconn, officially known as Hon Hai Precision Industry Co, reported record revenue for December 2024, driven primarily by AI servers. The company posted unaudited consolidated revenue of NT$654.8 billion ($20 billion), marking a 42.31% year-on-year increase despite a slight month-over-month dip. For Q4, Foxconn achieved NT$2.13 billion ($65 billion) in revenue, a 15.03% increase quarter-on-quarter and 15.17% year-on-year, setting a new quarterly record. All business segments showed strong growth, but AI servers were highlighted as the main contributor. Despite a forecasted slower Q1, Foxconn anticipates significant growth compared to the previous year.
The announcement led to a surge in share prices for Foxconn's suppliers, including a notable increase for Nvidia. This rise in share prices could be attributed to Foxconn's results or anticipation of announcements at the CES electronics event. Foxconn's success is seen as a positive indicator for the tech industry, suggesting robust consumer and corporate spending. The company's shares have increased by about five percent since the revenue announcement, with a full Q4 2024 results announcement expected in March to reveal if the revenue growth translated into higher profits.
Key takeaways:
Foxconn reported record revenue driven by AI servers, with a year-on-year surge of 42.31 percent in December 2024.
All four of Foxconn's segments experienced strong growth, but AI servers were specifically highlighted as a revenue driver.
Foxconn's revenue announcement led to a rise in share prices for its suppliers, including a notable increase for Nvidia.
Foxconn forecasts significant growth for the upcoming year, despite a typically slower Q1.
