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.
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