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Foxconn's Record Q4 Revenue: AI Server Demand Drives Growth

AInvestMonday, Jan 6, 2025 7:44 am ET
4min read


Foxconn, the world's largest contract electronics manufacturer, has reported record-breaking revenue for the fourth quarter of 2024, driven by strong demand for artificial intelligence (AI) servers. The company's sales jumped 15.2% to TWD2.1 trillion ($64.72 billion) in Q4, marking its highest-ever revenue for the quarter. This impressive performance was fueled by robust demand for AI servers, which led to significant revenue growth for Foxconn's cloud and networking products division.



AI servers have become a critical component of Foxconn's overall revenue growth strategy. According to Omdia, a global technology research and advisory firm, Foxconn's ODM direct business is expected to top its global server market analysis in 2024, overtaking Dell. This indicates that Foxconn's focus on AI servers is paying off and contributing to its overall revenue growth. Additionally, TrendForce predicts that the value of the AI server segment will jump from about $205 billion last year to $298 billion in 2025, with growth significantly outpacing that of standard servers. AI servers are forecast to account for more than 70% of the value of the entire server market this year, further validating the importance of AI servers in Foxconn's revenue growth strategy.



Foxconn's partnership with Nvidia has significantly contributed to its record-breaking Q4 revenue. The company secured a partnership with Nvidia to make Blackwell GPU reference designs, which drove strong demand for AI servers and led to robust revenue growth for its cloud and networking products division. This partnership allowed Foxconn to capitalize on the burgeoning artificial intelligence market and solidify its position in the server production sector. As a result, Foxconn's Q4 revenue jumped 15.2% to TWD2.1 trillion, marking its highest-ever revenue for the quarter. Additionally, Foxconn's cumulative revenue for the full year rose by 11.37% year-on-year to NT$6,859.9 billion or $208.59 billion.

Foxconn's expansion into the server production sector, particularly in the AI server segment, has significantly impacted its long-term financial prospects. The company's record-breaking sales in the fourth quarter of 2024 and the first quarter of 2025 were driven by strong demand for AI servers. This growth opportunity bodes well for Foxconn's long-term financial prospects, as the AI server market is expected to grow significantly in the coming years. Foxconn's strategic partnerships, such as its collaboration with Nvidia, further solidify its position in the AI server market and contribute to its overall revenue growth strategy.

In conclusion, Foxconn's record-breaking Q4 revenue was driven by strong demand for AI servers, which have become a critical component of the company's overall revenue growth strategy. The company's partnership with Nvidia has significantly contributed to its impressive performance, and its expansion into the server production sector has positively impacted its long-term financial prospects. As the AI server market continues to grow, Foxconn is well-positioned to capitalize on this opportunity and maintain its strong financial performance.
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