On Monday, Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd (OTC:HNHAF) (OTC:HNHPF), delivered a record-breaking fourth quarter as surging artificial intelligence demand propelled revenue well past Wall Street expectations. This is also reinforced optimism around Nvidia Corp (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL).
AI Server Demand Powers Record Quarter
Foxconn, the world's largest contract electronics manufacturer, reported fourth-quarter revenue of NTD 2.6 trillion ($82.7 billion), up 22% year over year, marking its strongest quarter on record, reported Reuters.
The result topped the NTD 2.42 trillion consensus estimate compiled by LSEG.
On a U.S. dollar basis, revenue climbed 26.4%, Foxconn said.
In December, Foxconn generated NTD 862.86 billion in revenue, a 31.77% year-over-year increase and the highest December total in the company's history.
Cloud And Networking Lead The Charge
The growth was driven primarily by Foxconn's cloud and networking products segment, fueled by booming demand for AI servers and server rack solutions.
Foxconn is a key manufacturing partner for Nvidia, building servers that house the chipmaker's GPUs used in AI training and data centers.
Foxconn said quarterly revenue rose sharply on both a sequential and annual basis, exceeding internal expectations and setting a high comparison bar for early 2026.
iPhone Segment Softens, But Signals Remain Positive
Foxconn's smart consumer electronics division, which includes iPhone assembly for Apple, posted a slight decline due largely to unfavorable foreign exchange movements.
Deepwater Asset Management Managing Partner Gene Munster said the results still point to healthy demand.
Munster wrote that Foxconn exceeded revenue estimates by 8%, posting 22% growth compared with the Street's 13% forecast.
He also highlighted the company's role as a key manufacturer of Nvidia GPUs and related products. “It’s also a positive read on $AAPL iPhone demand for the December quarter,” he said.
Foxconn will report full fourth-quarter earnings in March.
Price Action: Nvidia shares are up 25.89% in the past 12 months, while Apple has gained 9.09% during the same period, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Nvidia sits in the 94th percentile for Growth and the 97th percentile for Quality. See how it stacks up against competitors here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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