Foxconn’s Q1 Revenue Skyrockets by 29.7% Due to AI Server Demand
Taiwan’s Foxconn has reported a significant first-quarter revenue increase of 29.7% year-over-year, reaching a total of $66.6 billion. This surge is primarily attributed to the escalating demand for AI infrastructure.
As the world’s leading contract electronics manufacturer, Foxconn posted a revenue of T$2.13 trillion for the January-March period. This figure fell slightly short of market expectations, which projected a revenue of T$2.148 trillion. The growth was spearheaded by Foxconn’s cloud and networking division, which has reaped the benefits of the burgeoning demand for AI servers.
In March alone, the company witnessed a record-breaking revenue of T$803.7 billion. This represents a 45.6% year-over-year increase and marks the highest March reading in the company’s history.
Foxconn is a crucial manufacturing partner for chipmaker Nvidia and serves as Apple’s largest iPhone assembler. The company’s cloud and networking products division has become its largest revenue segment since Q2 2025, displacing consumer electronics in a structural reversal.
Notably, Foxconn is the sole assembler of Nvidia’s Blackwell-powered GB200 servers. These servers carry roughly a 40% price premium over conventional server models.
Looking ahead, Foxconn expressed confidence that operations will grow both quarter-on-quarter and year-on-year in the second quarter. The company expects AI server rack deployments to maintain a continued growth trend.
However, the company also issued a warning about the “volatile” global political and economic conditions. Chairman Young Liu specifically cited the Middle East conflict as a potential pressure point.
Despite the strong revenue growth, Foxconn’s stock has declined approximately 16% year-to-date. This performance is underwhelming compared to Taiwan’s benchmark index, which has gained around 12% over the same period.
Source: Proactive Investors