The upbeat tone comes after a forecast-beating 33% leap in internet revenue for the fourth quarter. It additionally contrasts sharply with remarks by Foxconn Chairman Younger Liu in November that the world’s largest contract electronics maker had “comparatively conservative and impartial” expectations for 2024.
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“We see very sturdy demand for AI servers from our shoppers,” Liu instructed an internet earnings convention, including that he expects the enterprise to have income progress of greater than 40% this 12 months.
The AI server market was prone to see 30% progress every year between 2023 and 2025, and Foxconn’s progress could be in keeping with that and even larger, he mentioned.
October-December internet revenue for the Taiwanese firm got here in at T$53.1 billion ($1.7 billion), handily beating a T$43.5 billion LSEG SmartEstimate. The 33% surge in revenue was the strongest year-on-year progress logged for 1 / 4 since March 2021.
Along with strong demand for AI servers, it additionally had better-than-expected gross sales of cloud and networking merchandise and sensible client electronics.
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Apple final month reported gross sales and revenue that beat Wall Road estimates, powered by progress in its iPhone enterprise although its China gross sales missed analysts’ estimates. Within the fourth quarter, client electronics together with smartphones accounted for 58% of Foxconn’s income whereas cloud and networking merchandise which embody servers contributed 20%.
Though it expects wholesome progress over 2024, Foxconn cautioned that first-quarter income was set to come back in decrease than the identical interval a 12 months in the past when gross sales surged after pandemic restrictions had been lifted in China.
Chief Monetary Officer David Huang additionally mentioned that 2024 progress in capital expenditure would not less than match final 12 months’s price, partly as a result of firm’s drive to diversify funding around the globe and develop into areas resembling electrical automobiles and semiconductors.
Foxconn’s capital expenditure climbed 14% in 2023 to round T$111.7 billion ($3.6 billion).
