Foxconn has posted double-digit annual net profit growth and says demand for its artificial intelligence servers should remain strong in 2026, despite uncertainty surrounding the Middle East conflict.
The world’s largest contract electronics maker reckons shipments of AI server racks could grow exponentially this year, after it grabbed around 40 per cent of that market. Foxconn chairman Young Liu said 2026 looks promising as global hyperscalers keep ramping AI investment.
Liu flagged the Middle East conflict as the biggest external risk this year, then pointed at Foxconn’s expanding factory footprint as a hedge.
“Diversified production capacity and localised manufacturing have enhanced our resilience in the face of various unforeseen risks.”
Earlier this month, Liu said the business impact was limited so far, though he warned a prolonged war and higher oil prices could push up raw material costs. He is targeting 2026 revenue of more than NT$9tn (€245bn), up from NT$8.10tn (€220bn) in 2025.
The pep talk lands while Hon Hai Precision Industry shares have been on a proper rollercoaster. The stock rose 25 per cent in 2025 on sturdy AI server sales, then fell more than 10 per cent after the Middle East conflict began, losing steam after a late-February peak.
Taiwan is one of the most exposed Asian economies to the crisis-driven surge in energy prices, so investors are not exactly relaxed. Foxconn used to be best known as an iPhone assembler for the Fruity Cargo Cult Apple, yet a sizeable chunk of revenue now comes from AI servers built for Nvidia and Amazon.
In 2025, cloud and networking products, including AI servers, made up 40 per cent of Foxconn’s total revenue, beating smart consumer electronics on 38 per cent. Profit rose 24 per cent for the year, which still fell short of market expectations.
Foxconn has continued to ride the data-centre boom and teamed up with OpenAI late last year to design and manufacture AI infrastructure hardware in the US. A week later, it announced an additional US$569m investment in AI infrastructure in Wisconsin.
For the three months ending December, net profit slipped two per cent year on year to NT$45.21bn (€1.23bn), missing analysts’ forecasts after a much higher tax bill. Revenue grew 22 per cent to NT$2.206tn (€60 bn), its fastest pace since the first quarter.
Ahead of the earnings, analysts said Nvidia’s strong fourth-quarter results should be good news for Foxconn, with the server maker lined up for growth tied to Nvidia’s GB200 and GB300 systems and whatever comes next.
