By Sherry Qin

Foxconn Technology Group, the world's largest contract electronics maker, said its revenue this year would beat last year's, boosting shareholders' confidence after it downgraded its outlook earlier this month.

Foxconn Chairman Young Liu said at the company's annual shareholders conference on Thursday that 2025 revenue is expected to be over 7 trillion New Taiwan dollars, equivalent to $234 billion, as robust AI server demand continues to support its growth. In comparison, revenue in 2024 was NT$6.86 trillion.

Foxconn lowered its 2025 outlook to earlier this month, when it said it now had a more conservative outlook compared with its expectations in March. It cited fast-changing U.S. tariff policies, their disruptive effects on global supply chains, and foreign-exchange headwinds.

Foxconn, best known for assembling Apple's iPhones, has been diversifying its businesses, growing its footprint in areas like artificial-intelligence servers and electric vehicles in recent years.

The Taiwan-based company now plays an increasingly important role in building AI servers for U.S. tech giants such as Amazon and Nvidia. Cloud and networking products--including AI servers--accounted for 34% of first-quarter revenue, making them Foxconn's second-largest business segment after smart consumer electronics at 40%.

Nvidia reported another set of robust results on Wednesday, beating market expectations despite restrictions on chip exports to China.

"This is a very important print and guide for the broader tech world and it shows the AI Revolution is heading into its next gear of growth despite the Trump tariff war playing out," Wedbush analysts said in a research note.

Turning to its EV business, Liu said Foxconn will soon unveil a partnership with another Japanese automaker, after announcing its collaboration with Mitsubishi Motors earlier this month.

Mitsubishi plans to sell an electric vehicle developed by a Foxconn unit in the second half of 2026.

The company has expressed interest in teaming up with Nissan Motor after the Japanese automaker ended talks to merge with Honda Motor earlier this year.

Foxconn's shares ended 2.6% higher in Taiwan, outpacing the benchmark Taiex's 0.2% gain.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

May 29, 2025 01:35 ET (05:35 GMT)

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