“TAIPEI: “Foxconn Expects Q1 Profit Surge & AI Driving Growth”,Taiwan’s Foxconn, the world’s largest contract electronics manufacturer, is poised to announce on Tuesday a significant increase in first-quarter profits, more than doubling from the previous year. This surge is attributed to robust demand for artificial intelligence servers, coupled with a favorable comparison to a low base in the previous year’s performance.”
“Last month, Foxconn announced a 10 percent decline in first-quarter revenue compared to the previous year. However, despite this setback, the company remains optimistic about its prospects for 2024.”
“According to a consensus estimate from 15 analysts by LSEG, the net profit for January-March for Apple’s top iPhone assembler is anticipated to reach T$29.3 billion ($904.6 million). This strong performance reflects the company’s significant position in the market and its continued partnership with Apple.”
“Such a figure would mark a remarkable 129 percent surge from the corresponding period a year earlier, when profit was dampened by a T$17.3 billion writedown linked to its 34 percent stake in Japanese electronics manufacturer Sharp Corp. Additionally, it would signify a third consecutive quarter of profit growth, highlighting the company’s resilience and strategic initiatives.”
“Foxconn is evidently investing heavily in its AI server offerings. Targeted clients reportedly include industry giants like HP and Dell,” stated Allen Huang, a vice president at Mega International Investment Service.
“Analysts at KGI Securities noted in a client memo that they anticipate the first quarter to represent Foxconn’s sales nadir for the year. However, they foresee continued robust demand for AI cloud servers, indicating sustained growth in this segment.”
“In 2025, we anticipate cloud sales to continue serving as the primary driver for both sales and earnings growth,” they added.
