Foxconn, formally known as Hon Hai Precision, fell on Tuesday after the world’s largest contract electronics maker clocked weaker than expected fourth quarter earnings, which overshadowed a strong revenue outlook.
Foxconn shares (TW:2317) shares fell 1.9% to T$212.50.
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The company, which is the largest server maker for NVIDIA Corporation (NASDAQ:NVDA) and a top manufacturer of Apple Inc’s (NASDAQ:AAPL) iPhone, posted a 2% drop in quarterly profit, with the print also missing market expectations.
Profit fell even as Foxconn clocked record fourth quarter revenue, as the company benefited from strong artificial intelligence-fueled demand. But strong revenue was offset by softer margins and a higher tax cost for the quarter.
Foxconn forecast “strong growth” for both its first quarter and full year revenue, forecasting outsized AI-fueled demand.
But the company also flagged potential economic and geopolitical headwinds at a global scale, including the war in the Middle East.
