Foxconn shares surge 9.5 per cent after Q4 profit beats market estimates

Shares of Apple (AAPL.O) supplier Foxconn (2317.TW) rose as much as 9.5 per cent early on Friday to their highest in three years, a day after it reported a fourth-quarter profit that beat expectations and forecast a bullish outlook for this year due to booming demand for AI servers.

Foxconn, formally called Hon Hai Precision Industry Co Ltd, on Thursday reported a bigger-than-expected 33 per cent jump in net profit for the fourth quarter and said it was also looking for a significant rise in revenue this year.

“We view Hon Hai as a major beneficiary of Nvidia’s next-generation AI server products with increasing AI server assemblies/racks orders,” analysts at Daiwa Capital Markets wrote in a note after the earnings briefing.

Profits at the world’s largest contract electronics maker could rise 13 per cent-25 per cent this year compared to a “flattish” last year, they said.

Shares of Foxconn jumped in early trading, outpacing a 0.5 per cent fall in the broader market (.TWII).

Foxconn rose as much as 9.5 per cent to touch T$132.50, its highest since March 23, 2021.