Foxconn profits rise on AI server demand despite trade tension concerns

Foxconn‘s fourth-quarter profits have risen on the back of strong AI server demand, highlighting the growing influence of artificial intelligence infrastructure on major tech manufacturers. The world’s largest contract electronics maker is navigating a complex business landscape where AI server production creates new opportunities while escalating trade tensions between major economies threaten its global manufacturing network.

The big picture: Taiwan‘s Foxconn is expected to report a 2.35% increase in fourth-quarter profit, reaching T$54.4 billion ($1.65 billion) according to analyst consensus.

Key details: The Apple iPhone assembler and Nvidia AI server manufacturer reported record fourth-quarter revenue in January, jumping 15.2% on strong AI server sales.

• Foxconn anticipates first-quarter performance to exceed the average level of the past five years with strong year-over-year growth.
• Apple recently announced plans to collaborate with Foxconn on building a 250,000-square-foot facility in Houston for assembling servers that will power Apple Intelligence.

Behind the numbers: The company’s positive performance comes from its strategic positioning in the AI infrastructure supply chain, particularly its relationships with tech giants Apple and Nvidia.

However: Global trade tensions are clouding Foxconn’s outlook, as the company maintains significant manufacturing operations in China and Mexico.

• Both countries now face increased import tariffs from U.S. President Donald Trump.
• Foxconn’s shares have fallen 8.7% so far this year, largely due to concerns about U.S. tariffs and trade policy.

What’s next: Foxconn will hold its earnings call Friday afternoon in Taipei, where executives are expected to provide an updated outlook for the remainder of the year.