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Foxconn's Q4 Surge: A Hidden Gem Amid Nvidia's CES 2025 Buzz

Wesley ParkTuesday, Jan 7, 2025 3:57 am ET
4min read


As the tech world buzzed with anticipation for Nvidia's CES 2025 keynote, investors may have overlooked a significant development: Foxconn's record-breaking fourth-quarter revenue. The Taiwanese electronics giant, which serves as a key supplier to Apple, reported a 15.17% year-over-year increase in revenue, driven by robust demand for AI servers and cloud computing products. This strong performance highlights the growing importance of AI infrastructure and the potential opportunities for investors in the sector.



Foxconn's Q4 revenue of NT$2.13 trillion ($64.83 billion) was a record high, up 15.17% year-over-year. This impressive growth was fueled by a 42.31% annual increase in December revenue to NT$654.8 billion ($19.9 billion). The company's full-year revenue reached NT$6.86 trillion ($208.59 billion), an 11.37% increase from the previous year. This remarkable performance underscores Foxconn's strategic pivot towards AI infrastructure, particularly its partnership with Nvidia for GB200 chip production.

F Total Revenue year-on-year growth value
Name
Date
Total Revenue year-on-year growth value
Ford MotorF
20240331
1.30B


Foxconn's expansion into AI infrastructure, coupled with its partnership with Nvidia, aligns perfectly with its traditional role as Apple's primary iPhone manufacturer. By leveraging its existing manufacturing capabilities and global footprint, Foxconn can efficiently scale AI server production and tap into new revenue streams. This strategic move not only reduces Foxconn's reliance on Apple but also positions it as a key player in the burgeoning AI market.

The partnership with Nvidia further strengthens Foxconn's position in the AI infrastructure landscape. Nvidia's GPUs are widely recognized as the industry standard for AI workloads, and Foxconn's manufacturing prowess ensures a steady supply of AI servers to meet growing demand. This collaboration allows both companies to capitalize on the surging AI market, with Foxconn benefiting from increased revenue streams and Nvidia gaining a reliable manufacturing partner for its AI servers.

As AI demand continues to surge, Foxconn's partnership with Nvidia for GB200 chip production positions it well to capitalize on this trend. The company is building what it claims will be the world's largest AI server manufacturing facility in Mexico, further solidifying its commitment to the AI infrastructure market. This strategic pivot beyond its traditional role as Apple's primary iPhone manufacturer could lead to robust stock performance, as seen in the 15.17% year-over-year revenue growth in Q4 2024.

In conclusion, Foxconn's record-breaking Q4 revenue, driven by AI server demand, signals significant growth opportunities in the coming years. As AI demand continues to surge, Foxconn's partnership with Nvidia for GB200 chip production positions it well to capitalize on this trend. Investors should take note of Foxconn's strong performance and consider the potential long-term benefits of its strategic pivot towards AI infrastructure. By diversifying its product portfolio and leveraging its existing manufacturing capabilities, Foxconn is poised to maintain its competitive edge in the electronics manufacturing industry and tap into new revenue streams.
Comments

Post
WoodKite
01/07
$AAPL India is reportedly planning a $2.7B aid package and tariff cuts for electronics. According to Bloomberg, India is considering allocating approximately $2.7B in new subsidies and reducing import tariffs to bolster local manufacturing, particularly for smartphones produced by companies like Apple. This information comes from Shruti Srivastava, Sankalp Phartiyal, and Ruchi Bhatia of Bloomberg. The cabinet will ultimately decide on these proposals, and if they're approved, we might see more details in the government's February budget, sources reveal.
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FirmMarket4692
01/07
I'm holding $AAPL at 250c, aiming to reduce my position to 249 by Wednesday.
0
2strange4things
01/07
Evercore ISI has reaffirmed its Outperform rating on $AAPL, keeping its price target at $250.
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Beetlejuice_hero
01/07
Holding $TSMC for long; AI future looks bright.
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killawatts22
01/07
AI servers driving revenue like crazy, bullish sign
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BloodForThCursedIdol
01/07
Holding $TSMC shares. Diversifying into AI with chips is the way to go. Tech's future is now.
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michael_curdt
01/07
Foxconn's AI server play is genius. Building the world's largest facility in Mexico is a masterstroke. 🌍💡
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DoU92
01/07
15.17% QoQ revenue growth is wild. Foxconn's not just an Apple supplier anymore. They're AI powerhouses.
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MCU_historian
01/07
Nvidia + Foxconn = AI dream team. GB200 chips are gonna dominate. Who's ready for some serious long-term gains?
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VirtualLife76
01/07
Foxconn's AI move is a game-changer, big time.
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Elichotine
01/07
Nvidia partnership = 🚀 for Foxconn's growth
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fgd12350
01/07
Investors sleeping on Foxconn might wake up to a nice surprise. AI servers aren't just a trend, they're the new king.
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Repa24
01/07
Mexico plant is smart; Foxconn expanding right
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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