March 19 – Foxconn expects its server revenue to outpace that generated by Apple’s (AAPL, Financial) iPhones within two years, Reuters reported.
Foxconn Chairman Young Liu told reporters on the sidelines of Nvidia’s GTC event that the shift could occur within two years, and possibly as soon as this year. Foxconn, formally known as Hon Hai Precision, did not immediately respond to comment.
In its Q4 results last week, Foxconn projected that its AI server revenue for Q1 2025 will more than double both quarter-on-quarter and year-over-year, spurred by the mass production of Nvidia’s GB200 GPUs. The company anticipates that AI server revenue will eventually reach a trillion-dollar scale in local currency, making up more than half of its overall server revenue.
Additionally, Liu stated on an earnings call that revenue from cloud and networking products, driven by strong demand for AI servers, is expected to approach that of smart consumer electronics, including iPhones, later this year. In 2024, cloud and networking accounted for 30% of revenue, compared to 46% from smart consumer electronics.
This article first appeared on GuruFocus.
