Foxconn Technology Group, the Taiwanese manufacturing giant that builds everything from iPhones to AI servers, reported record-breaking fourth quarter revenue on Monday. The company generated NT$2.6 trillion (approximately $83 billion) in Q4 2025—a 22% surge from the same period a year ago and well above analyst expectations.

The results confirm what many investors already suspected: the AI infrastructure buildout is accelerating, and the companies that physically assemble the hardware are reaping enormous benefits. Foxconn's performance suggests that the demand environment for AI data center equipment remains robust heading into 2026.

AI Servers: The New Growth Engine

While Foxconn remains best known as Apple's primary iPhone assembler, the company's AI server business has become its most dynamic growth driver. The computing and cloud infrastructure segment—which includes AI servers manufactured for Nvidia and other clients—posted revenue growth that far outpaced the company's consumer electronics division.

Foxconn is Nvidia's largest server manufacturing partner, assembling the complete AI accelerator systems that power data centers around the world. As hyperscale cloud providers race to expand their AI computing capacity, Foxconn has emerged as a critical bottleneck in the supply chain.

"The growth was powered by strong demand for AI data center and cloud infrastructure hardware, a segment that is now driving more growth than its traditional consumer electronics business," the company noted in its earnings release.

Full-Year 2025 Results

For the full year 2025, Foxconn reported total revenue of NT$8.10 trillion, an 18% increase from NT$6.86 trillion in 2024. The company's trajectory reflects a fundamental shift in where value is being created in the technology hardware ecosystem.

Key performance metrics for 2025:

  • Q4 revenue: NT$2.6 trillion ($83 billion), up 22% year-over-year
  • Full-year revenue: NT$8.10 trillion, up 18% year-over-year
  • AI/cloud infrastructure: Now the company's fastest-growing segment
  • Consumer electronics: Slight decline due to foreign exchange headwinds

The results beat analyst consensus, which had forecast Q4 revenue of approximately NT$2.418 trillion. The upside surprise suggests that AI infrastructure demand is running hotter than even optimistic projections anticipated.

Strategic Partnerships Driving Growth

Foxconn's AI dominance stems from a series of strategic partnerships that position it at the center of the infrastructure buildout:

Nvidia: As the primary manufacturing partner for Nvidia's enterprise AI systems, Foxconn assembles complete server solutions including the H100 and H200 GPU platforms. The company announced in 2025 a partnership with Nvidia and the Taiwanese government to establish major AI factory infrastructure in Taiwan.

OpenAI: In November 2025, Foxconn signed a collaboration agreement with OpenAI to design next-generation AI infrastructure hardware. The partnership suggests Foxconn is moving up the value chain from pure manufacturing to co-development.

SoftBank Stargate Project: SoftBank acquired a Foxconn facility in Ohio for $375 million and is converting it into a major AI data center. Under the arrangement, SoftBank owns the plant and supplies equipment while Foxconn manages day-to-day operations—a model that could be replicated at other sites.

iPhone Segment Performance

Foxconn's smart consumer electronics segment, which includes iPhone assembly for Apple, posted a slight revenue decline during the quarter. The company attributed this softness primarily to unfavorable foreign exchange movements rather than weaker underlying demand.

The latest iPhone models, introduced in September, have performed strongly in both the U.S. and China, contributing to double-digit year-over-year sales growth in those markets. However, the smartphone business is no longer Foxconn's primary growth engine—that title now belongs to AI infrastructure.

The shift reflects a broader rebalancing in the technology hardware industry. While smartphones remain a massive market, growth has plateaued. AI computing, by contrast, is in the early innings of what many analysts expect to be a multi-year infrastructure cycle.

Expansion Plans

To meet surging demand, Foxconn is aggressively expanding its production capacity beyond Asia. The company is adding AI server manufacturing facilities in the United States, including sites in Wisconsin and Texas. These investments serve multiple purposes:

  • Supply chain diversification: Reducing dependence on any single geographic region
  • Customer proximity: Building closer to major U.S. hyperscale customers
  • Geopolitical hedging: Preparing for potential restrictions on cross-border technology flows
  • Government incentives: Capturing subsidies available under U.S. manufacturing programs

Stock Performance and Valuation

Foxconn shares gained 25% across 2025, following a 76% surge the previous year. The two-year rally reflects the market's recognition of Foxconn's central role in the AI infrastructure buildout.

Despite the gains, some analysts argue the stock remains attractively valued relative to its growth trajectory. The company trades at a lower multiple than pure-play AI beneficiaries like Nvidia, even though its exposure to the same demand drivers is substantial.

The company is scheduled to report full fourth-quarter earnings results in March, which will provide additional detail on profitability, margins, and forward guidance.

Investment Implications

Foxconn's results carry implications beyond its own stock:

AI infrastructure demand confirmed: The 22% revenue beat suggests that enterprise AI spending remains robust, a positive signal for the entire semiconductor supply chain.

Nvidia's order book: As Nvidia's primary manufacturing partner, Foxconn's strength implies continued strong demand for Nvidia's AI accelerators heading into Jensen Huang's CES keynote tonight.

Supply chain bottleneck: Foxconn's capacity constraints could limit how quickly customers can receive AI computing equipment, potentially supporting pricing power across the supply chain.

Geographic diversification: The U.S. manufacturing expansion creates opportunities for companies exposed to domestic infrastructure investment.

The Bottom Line

Foxconn's record-breaking quarter provides the clearest evidence yet that AI infrastructure spending is accelerating, not slowing. The $83 billion in quarterly revenue—driven primarily by AI server manufacturing for Nvidia and other clients—demonstrates that the picks-and-shovels play in AI remains alive and well. For investors trying to gauge the health of the AI trade, Foxconn's numbers deliver a resounding endorsement: demand is real, growing, and showing no signs of abating.