As part of its 2024 guidance, the firm which is a key supplier to Apple and Nvidia indicated that it expects “significant” sales growth and forecasted that AI servers would account for 50% of its total server revenue next year in 2025, making it one of the most important levers of growth for the company.
The company said that the cumulative revenue of AI servers in the first three quarters of this year grew more than 200% compared to the same period last year, and general server revenue also grew by more than 20%.
“Looking ahead to operating performance in the fourth quarter, in addition to the traditional peak season, the well-performing smart consumer electronics product segment is expected to show strong quarter-on-quarter growth; in terms of cloud and networking products, the demand for AI servers is strong,” Foxconn said in a statement.
In the July-September quarter, the company also said its revenue was up 20% from a year earlier while gross profit increased 12% and operating profit climbed 19% during this period.
Foxconn Chairman Young Liu said there were five operating pillars for the company – artificial intelligence, three major platforms (Smart Manufacturing, Smart EV, Smart City) and semiconductors. He said 2025 will be the “AI Year” for the Group and that he was optimistic that AI will be the top growth driver for the Group.
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It said that the company will focus on becoming a ‘technology manufacturing platform service company’ based on the foundation of its longstanding manufacturing services, plus its three major platform solutions, including Smart Manufacturing, Smart EV, and Smart City.Commenting on the impact that the US presidential election would have on the company’s operations, Chairman Liu said that as a multinational enterprise, the Group was not concerned about the election itself, but is looking at factors such as investment policy, environment and business opportunities. He said that Foxconn has seen at least 11 presidential election cycles since it started operating in America.
US President-elect Donald Trump has threatened to put a 10% tariff on all US imports and a 60% levy on Chinese-made products, a move that could impact Foxconn and its key client Apple as their factory in Zhengzhou is a major iPhone assembly location.
“The overall outlook for significant growth is unchanged, although the visibility is better than in August,” the company said. “Among the main products, the growth of cloud and networking products is even stronger, while components and other products are also performing strongly. For computing products, the full-year outlook for this segment has been raised to significant growth due to the effects of new products.”
