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The booming marketplace for artificial quality servers brought Taiwan's Foxconn a 24 percent leap successful yearly nett profit, the institution said Monday, forecasting continued beardown request for the hardware.
The world's largest declaration electronics manufacturer, besides known by its authoritative sanction Hon Hai Precision Industry, called AI the "core driving force" of its business.
Foxconn has gone beyond assembling low-margin Apple iPhones to making AI servers for Nvidia on with electrical vehicles and robotics.
It's a determination that is paying disconnected arsenic tech firms worldwide contention to walk large connected grooming and deploying rapidly evolving AI systems.
In 2025, nett net came to NT$189.4 cardinal ($5.9 billion), up from NT$152.7 cardinal successful 2024, Foxconn said.
Revenue jumped 18 percent on-year to NT$8.1 trillion, conscionable beating the estimates of a Bloomberg survey of economists.
Sky-high tech stock results and valuations person fed concerns of an AI marketplace bubble that could yet burst, similar the dot-com roar that imploded astatine the crook of the millennium.
But Foxconn connected Monday forecast a "strong AI server request outlook" with "high double-digit quarter-on-quarter growth" expected for AI rack shipments successful the archetypal 4th of 2026.
Cloud and networking services accounted for 40 percent of Foxconn's concern portfolio successful 2025, up from 30 percent successful 2024.
Meanwhile, astute user electronics declined from 46 percent to 38 percent.
Volatility successful vigor markets caused by the warfare successful the Middle East has raised questions astir the interaction connected the strategical chipmaking industry, and different tech manufacturing.
Ahead of Monday's net release, Bloomberg Intelligence expert Steven Tseng told AFP that for Foxconn, "so acold the interaction from the Middle East struggle appears mostly manageable".
"As the portion is not a large marketplace for either AI hardware oregon smartphones, the main hazard is much connected costs than demand, driven by higher lipid prices and immoderate logistic disruptions," helium said.
"Hon Hai's unreality business, mostly driven by AI server growth, has go the largest gross contributor, and should proceed to outgrow the iPhone concern implicit the adjacent fewer years," Tseng added.
Analysts astatine J.P. Morgan gave a affirmative outlook for Foxconn successful a enactment this month, saying AI server maturation would "remain the main operator for Hon Hai successful 2026".
In November, Foxconn announced an statement with ChatGPT shaper OpenAI to plan and physique AI information centre hardware.
