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Foxconn Reports Strong Q4 Earnings, Forecasts Robust Growth Driven by AI Server Demand

The electronics giant's shares surged 9.5% following a 33% jump in Q4 profit, with a significant revenue increase expected in 2024 due to high demand for AI servers.

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Young Liu, chairman and chief executive officer of Foxconn Technology Group, speaks to members of the media ahead of the company’s 50th Anniversary Gala Dinner event in Taipei on February 20, 2024. Photo: Bloomberg
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Overview

  • Foxconn, the world's largest contract electronics maker, reported a 33% increase in Q4 net profit, surpassing market expectations.
  • The company's shares hit a three-year high, rising as much as 9.5% in early trading, buoyed by the strong earnings report.
  • Foxconn forecasts 'robust growth' for 2024, attributing the optimism to a surge in demand for AI servers, with AI server-related revenue expected to account for 40% of its total server business.
  • The firm is diversifying its investment to include electric vehicles and semiconductors, with capital expenditure in 2024 expected to at least match the previous year's growth.
  • Despite a slow start to the year, Foxconn anticipates a significant revenue increase in 2024, driven by booming AI demand and strong sales in consumer electronics, including smartphones.