This article first appeared on GuruFocus.
Shares of Foxconn (FXCOF) inched higher Monday after the contract manufacturer posted record fourth-quarter sales, supported by strong demand for artificial intelligence infrastructure.
The Taiwan-based company, a key supplier to Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL), said fourth-quarter revenue rose about 26% year over year on a U.S. dollar basis to roughly $83 billion. Growth came mainly from its cloud and networking segment, which benefits from rising orders for AI servers and related equipment.
Foxconn also reported that December sales reached a record level, extending momentum from earlier in the quarter. The company noted, however, that weaker foreign exchange rates weighed on its consumer electronics unit, which includes large-scale iPhone assembly for Apple.
The update comes as investors remain focused on Nvidia’s expanding role in global AI infrastructure. Foxconn builds some of Nvidia’s most advanced AI server systems and continues to ramp capacity to meet customer demand.
Separately, Foxconn said it expects to deliver a large supercomputing cluster it is building for Nvidia, in partnership with the Taiwanese government, during the first half of the year.