Foxconn's AI-Driven Revenue Surge: A Record Fourth Quarter

Foxconn, the world's largest contract electronics manufacturer, has reported a record-breaking fourth-quarter revenue, driven by the surging demand for AI servers. The company's strong performance highlights the growing importance of AI technologies in various industries and the opportunities they present for businesses that can capitalize on this trend.



Foxconn's revenue for the fourth quarter of 2024 reached NT$1.85 trillion (US$57.2bn), marking a 20% increase compared to the same period last year. The company's net profit for the quarter rose to NT$49.3bn (US$1.52bn), representing a 14% year-on-year increase. This impressive performance marks the fifth consecutive quarter of profit growth for Foxconn.

The company attributed its strong performance to robust demand for AI servers, which grew by more than 200% in the first three quarters of 2024 compared to the same period last year. Foxconn's shares have surged more than 100% so far this year, significantly outperforming the broader market's 28% gain, reflecting investor confidence in the company's AI-focused strategy.

Foxconn is positioning itself to capitalize on the growing demand for AI technologies and expects the shipment volume of AI servers to increase quarter by quarter in 2025, potentially accounting for more than 50% of overall server revenue. This growth is anticipated to become the most significant driver for the company's future performance.

Foxconn's AI strategy extends beyond server production. The company is focusing on leveraging AI to enhance its own manufacturing processes. As Foxconn continues to invest in Gen AI for manufacturing, the company reports that its Smart Manufacturing initiative has increased revenue per employee by more than 80%. The company is also collaborating with several major international partners on AI, robotics, and automation projects.

Looking ahead, with smart manufacturing being one of the five major operating pillars for 2025, Foxconn's focus on becoming a technology manufacturing platform service company is expected to drive its growth in the coming years. Its success in this area may serve as a bellwether for the broader industry, signaling a shift towards AI-driven growth and innovation.

Foxconn reports Chairman Liu's future view: "he said he is optimistic about next year, in which AI will be the most important growth driver for the Group."

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