Investing.com – Shares of Foxconn (SS:601138), formally called Hon Hai Precision Industry Co Ltd (TW:2317), rose on Monday after the company announced record-breaking fourth-quarter revenue.
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.