TechnologyNews

Apple Supplier Foxconn Experiences Record High Amid Booming AI Server Demand

Apple

Apple supplier Foxconn, the world’s largest contract electronics manufacturer, has taken an optimistic stance for the year ahead. In a surprising shift from previous expectations, the company anticipates a significant surge in revenue driven by the soaring demand for artificial intelligence (AI) servers.

Apple

Strong Demand for AI Servers

During an online earnings conference, Foxconn Chairman Young Liu revealed that they are witnessing robust demand for AI servers from their clients. The AI server market is projected to grow by approximately 30% annually between 2023 and 2025, and Foxconn aims to match or even exceed this growth rate. Liu confidently predicts revenue growth of over 40% for the company in 2024.

Fourth-Quarter Profit Surge

Foxconn’s financial performance in the fourth quarter of 2023 exceeded expectations. Net profit soared by an impressive 33%, marking the strongest year-on-year growth for a quarter since March 2021. The company’s success can be attributed to AI server demand and better-than-expected sales of cloud and networking products and smart consumer electronics.

Apple’s Influence

Apple, another tech giant, has also played a role in Foxconn’s positive outlook. The Cupertino-based company reported sales and profits that surpassed Wall Street estimates, driven by iPhone business growth. Although Apple’s China sales fell short of analysts’ predictions, its overall performance contributed to Foxconn’s success.

Revenue Breakdown

In the fourth quarter, consumer electronics (including smartphones) accounted for 58% of Foxconn’s revenue, while cloud and networking products (including servers) contributed 20%. This diversification positions Foxconn well for continued growth.

Caution Amid Optimism

Despite the upbeat forecast, Foxconn remains cautious. First-quarter revenue is expected to be lower than in the same period last year, when sales surged after pandemic restrictions eased in China. Chief Financial Officer David Huang emphasized that capital expenditure growth in 2024 would at least match last year’s rate. The company’s strategic investments in areas such as electric vehicles and semiconductors contribute to its forward-looking approach.

Conclusion

Foxconn’s bullish outlook underscores AI servers’ pivotal role in the tech industry’s evolution. As demand continues to rise, the company’s adaptability and diversification will be crucial for maintaining its upward trajectory.

Written by
Jennifer Dixon

Jennifer Dixon is a passionate and professional news writer with over 15 years of experience in the media industry. She has worked as a reporter, editor, and correspondent for various news agencies such as Reuters, CNN, and BBC. She has covered a wide range of topics, from politics and business to culture and entertainment. She has a keen eye for detail and a flair for storytelling. She is also an avid reader and learner, always curious about the world and its people. Jennifer holds a master's degree in journalism from Northwestern University and a bachelor's degree in English from Yale University. She is currently working as a freelance writer and consultant, helping clients with their news and content needs. In her spare time, she enjoys hiking, yoga, and photography.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Dynasty Rookies
SportsNews

The Future Stars of Gridiron: Unveiling the Top 50 Dynasty Rookies of 2024

The landscape of fantasy football is ever-evolving, and as we approach the...

Hyrox
FitnessNews

Hyrox Launches Comprehensive Training Ecosystem for Gyms Worldwide

Global fitness race brand Hyrox has taken a significant stride by introducing...

COD
GamesNews

COD Mobile World Championship 2024: Battle Royale’s Ultimate Showdown

The Call of Duty: Mobile World Championship 2024 is set to ignite...

Epic Games
TechnologyNews

Apple Denies Violating US Court Order in Epic Games Lawsuit

Oakland, California In a recent legal battle, Apple, the maker of iPhones, has...