For companies whose business activities are tied to Taiwan and China, the financial results for January and February are variable due to the impact of the traditional New Year holidays. Foxconn has already reported its results for January, demonstrating a 3% increase in revenue even taking into account the break in work caused by the holidays, and this allowed it to look more optimistically at the results of the entire first quarter.
Image source: Foxconn
Foxconn managed to earn $16.4 billion last month. When reporting the results of the previous quarter, the Taiwanese company assumed that the first quarter of this year would demonstrate dynamics at the average level for the previous five years, if we demonstrate consistent revenue growth. Now the management believes that the company’s revenue will grow more strongly in the first quarter than over the past five years. The revenue growth will also be more pronounced in a year-on-year comparison, which is also a signal for an improvement in the forecast compared to the previous one.
The largest contract manufacturer of server systems based on Nvidia computing accelerators and the largest assembler of Apple consumer devices, Taiwan’s Foxconn (Hon Hai Precision Industry) is heavily dependent on the geopolitical situation, which is rocked by the rise to power in the United States of Donald Trump with his obsession with the idea of tariff regulation of international trade, and the influence of the market for artificial intelligence systems, on the other hand.
The success of Chinese startup DeepSeek has momentarily raised doubts among investors about the need to increase the computing power of the AI industry at the same rate, which required colossal expenses. The focus on the production of server equipment for Foxconn is relevant, since the smartphone segment does not demonstrate clear progress in the dynamics of financial indicators, especially in relation to Apple iPhone sales.