Investing.com – Stocks Foxconn (SS:), formally so-called Hon Hai Precision Industry Co Ltd ( TW: ) rose on Monday after the company posted record fourth-quarter earnings.
The world’s largest electronics contract manufacturer on Sunday reported a 15.2% increase in revenue for the fourth quarter of 2024, reaching T$2.13 trillion ($64.72 billion). This slightly beat the median forecast of T$2.1 trillion, driven primarily by strong demand for artificial intelligence (AI) servers.
Shares of the Taiwanese company rose 3% to T$187.50 on Monday, according to Yahoo Finance data.
Foxconn’s cloud and network products division, which counts AI chipmaker NVIDIA Corporation (NASDAQ: ) among its clients, has seen significant growth due to increased demand for AI servers.
In contrast, the smart consumer electronics segment, including Apple Inc’s (NASDAQ: ) iPhone, posted flat year-over-year growth.
December revenue alone reached T$654.8 billion, up 42.3% year-over-year and the second highest level for the month, the company said.
Looking ahead, Foxconn expects first-quarter performance to be in line with historical averages, but expects significant year-over-year growth.
Analysts attribute Foxconn’s impressive performance to its strategic positioning in the AI server market, which has seen unprecedented growth. The company’s ability to capitalize on this demand has bolstered investor confidence, contributing to the recent rally in share prices.
