Driven by the increased market visibility of AI servers, Foxconn has upgraded its outlook for 2024 from neutral to significant growth, as announced by chairman Young Liu during a recent earnings call.
Liu revealed that Foxconn will participate in Nvidia's GTC 2024 event, scheduled from March 18-21 in San Jose, where further details about the sector will be unveiled.
In response to market concerns regarding Foxconn's AI server business, Liu forecasted triple-digit growth for GPU modules in 2024, with AI server revenue expected to surge by over 40%, constituting more than 40% of overall server revenue.
Highlighting the expansion beyond CSP clients, Liu noted that Foxconn's existing brand customers are increasingly investing in AI servers, projecting a positive impact on the group's overall performance alongside the stabilization of general-purpose servers.
While acknowledging the inventory correction phase affecting networking products in the first half of 2024, Liu remained optimistic about achieving strong growth in overall cloud networking products for the year.
Regarding Foxconn's vertical integration capabilities, Liu underscored the group's core competitiveness in AI servers, encompassing components, modules, complete machines, and data centers. Foxconn stands as the sole provider capable of delivering comprehensive solutions for AI data centers, boasting expertise in high-performance computing servers, storage devices, switches, power supply solutions, and advanced heat dissipation technologies.
Liu highlighted Foxconn's prowess in high-speed switches and liquid cooling technology. Having initiated work on liquid cooling technology five years ago, Foxconn offers value-added benefits such as enhanced computing performance, space optimization, energy efficiency surpassing industry standards, cost-effective cooling solutions, and quieter machine operations.
In 2023, Foxconn scored total revenue of NT$6.16 trillion (US$195.78 billion), with revenue distribution across the consumer sector (54%), cloud (22%), computer terminal products (18%), and components and other products (6%).
