TAIPEI – Foxconn saw a 33% year-over-year jump in net profit in the fourth quarter, and said it is optimistic for 2024's prospects due to the increasing demand for AI servers.

The company's of profit of NT$53.1 billion ($1.7 billion) was the strongest year-on-year growth logged for a quarter since March 2021. In addition to robust demand for AI servers, it also had better-than-expected sales of cloud and networking products and smart consumer electronics, said Chairman Young Liu.

Consumer electronics, including smartphones, accounted for 58% of Foxconn’s revenue in the quarter, while cloud and networking products, which include servers, contributed 20%.

Liu said the AI server market was likely to see 30% growth each year between 2023 and 2025, and Foxconn’s growth would be in line with that or even higher.

"We see very strong demand for AI servers from our clients,” Liu said.

While upbeat for the year, the company said first-quarter revenue was set to come in lower than the same period a year ago when sales surged after pandemic restrictions were lifted in China.

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