Foxconn, a pivotal manufacturing partner for AI giant Nvidia, has posted a robust 22% year-over-year revenue increase for its final quarter of 2025. This surge underscores the escalating investment by technology firms in the foundational infrastructure required for artificial intelligence.
The Taiwanese electronics behemoth, formally known as Hon Hai Precision Industry Co., reported revenues of NT$2.6 trillion (approximately $83 billion) for the three months ending December. This figure not only surpassed analyst expectations of NT$2.4 trillion ($77 billion) but also reflects significant growth in both its components and cloud computing segments.
As the world’s largest contract electronics manufacturer, Foxconn plays a critical role in producing the servers that house the powerful processors essential for AI data centers. Beyond its AI-centric operations, the company remains a key assembler for Apple’s flagship iPhone.
Foxconn’s strategic positioning in the burgeoning AI sector has not gone unnoticed. Its share price experienced a remarkable 25% climb throughout 2025, building on a substantial 76% surge in the preceding year. This upward trajectory is a clear indicator of investor confidence in its pivotal role in the AI supply chain.
The company’s statement highlighted that “Revenue in the fourth quarter of 2025 achieved strong growth both QoQ and YoY, exceeding our expectation of significant growth, causing a high base for the first quarter.” This suggests a strong operational performance driven by sustained demand.
Recent strategic moves by Foxconn further solidify its commitment to AI. In November, the company announced a partnership with OpenAI to co-develop next-generation AI infrastructure hardware. Moreover, in May, a collaboration with Nvidia and the Taiwanese government was established to bolster infrastructure for a significant AI factory located in Taiwan. Further demonstrating its expanding footprint in data infrastructure, Foxconn announced in July a strategic investment in TECO Electric & Machinery Co., a company specializing in data center construction.
Looking ahead, Foxconn anticipates its earnings to remain at the higher end of its five-year historical range. This optimism is largely attributed to the continued robust demand for AI rack shipments, even as the company navigates the typical seasonal slowdown in the Information and Communications Technology (ICT) sector during the first quarter. This resilience points to the sustained and powerful momentum of the AI market.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/15323.html
