Foxconn (FXCOF) expects its server revenue to outpace its earnings from Apple's (NASDAQ:AAPL) iPhones within two years, according to a Reuters report citing Taiwan's Central News Agency.
Speaking at Nvidia's (NASDAQ:NVDA) GTC event, Chairman Young Liu said the shift "will definitely happen within two years" and could even occur as early as this year. Foxconn, a key assembler of iPhones and a major supplier of Nvidia's servers, projected during its Q4 2024 earnings report that AI server revenue will more than double quarter-over-quarter and year-over-year in Q1 2025.
The company also expects server revenue to grow steadily as Nvidia's GB200 enters mass production. For full-year 2025, Foxconn officially known as Hon Hai Precision (HNHAF) expects its AI server revenue to reach the trillion-dollar scale in local currency, accounting for more than half of its total server segment.
Liu noted that revenue from cloud and networking products, driven by AI server demand, will approach that of smart consumer electronics including iPhones this year. In 2024, cloud and networking products made up 30% of Foxconn's revenue, while smart consumer electronics, including iPhones, contributed 46%, according to the report.
This article first appeared on GuruFocus.免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。