Wen-Youe Lee and Yimou Lee
Taipei (Reuters) – Taiwanese FoxConn, the world’s largest producer of electronics contracts, said on Friday that a solid demand of his technological clients will encourage strong revenue growth in the first quarter.
An excellent forecast is contrary to a cautious note hit by many other companies, clashed by the tumultuous trade policy of US President Donald Trump, and emphasizes that the flourishing of demand for artificial intelligence has not yet been completed and will further encourage the sale of hardware.
“We haven’t seen that CSP (cloud service providers) are slowing down. There are rumors about (market) rumors that the demand for CSP this year will peak, and then it will fall next year. But we don’t see it … at least for Foxconn,” said Young Liu Analyst Presidents at the Conference Call.
He said that AI servers would do more than half of the total revenue of the company server this year because it expands production for Nvidia.
“In the first quarter, we expect that the server’s AI revenues will grow by more than 100%, and a quarter and in relation to the year and in relation to the year,” Liu said.
FoxConn, which also makes the iPhone for Apple, has booked a net profit from October-December of $ 46.33 billion ($ 1.41 billion), and lacking an average of $ 54.4 billion of 15 estimates composed by LSEG. The net profit decreased by 13% compared to $ 53.15 billion over the same period a year earlier.
FoxConn was falling the first of the second quarter of 2023, when it fell 0.9%, and mostly derived from the loss of investment in Japanese sharp and currency exchange. FoxConn did not ensure the clearing of his account, which is not operational income and expenses.
In January, FoxConn said that the revenue of October and welcomed had skipped 15.2% on the record for that quarter on a strong sale of AI server.
The company, formally Hon Hai Precision Industry, said on Friday that revenue in the first quarter of consumer electronics would probably grow significantly and that sales from clouds and networking products would grow strongly without giving numerical guidelines.
He expects his effect in the first quarter better than the average level in the last five years.
The average assessment of analysts for FoxConn’s net profit in the first quarter is $ 43.56 billion, according to LSEG Sampestimime Condden of 15 analysts. This would represent an increase of 98% compared to the same period a year ago.
Escalancing a global trade war, complicated its odds because Foxconn has a lot of production in China and Mexico, two of America’s largest commercial partners facing increased imported tariffs under Trump’s administration.
