Foxconn’s AI Server & Cloud Revenue Surpasses Consumer Devices—Tech Giant Pivots to the Future
Foxconn just flipped the script—their AI and cloud hardware now outearns iPhones and PlayStations. The manufacturing behemoth’s bet on enterprise tech is paying off, while consumer electronics take a backseat.
From iPhones to AI: The Silent Shift
No press releases, no fanfare—just cold, hard revenue sheets showing servers and cloud infrastructure quietly becoming Foxconn’s cash cow. Guess even gadget factories need an 'AI transformation' narrative to keep Wall Street happy.
The Cynical Finance Jab
Because nothing screams 'growth stock' like pivoting to whatever buzzword hedge funds are yelling about this quarter. At least they’re actually making the hardware.
Foxconn maintains strong position in server market
The company’s sales breakdown shows the turn. Consumer electronics made up 35% of total revenue in the second quarter. Cloud and networking, which include servers, accounted for 41%. Back in 2021, consumer electronics were 54% of revenue. The numbers underline a business that is steadily tilting away from handsets and toward data center hardware.
Those early, cautious investments helped Foxconn build a prized relationship with Nvidia and other big AI customers, analysts say.
“The company has been in the business for years, meeting higher quality requirements, diversifying assembly and operations across sites, and pursuing vertical integration,” said Ming-Chi Kuo, an analyst at TF International Securities.
Foxconn’s history in the field stretches back two decades. It began producing reference designs for Nvidia graphics cards around 2002.
By about 2009, it was building general-purpose servers for cloud service providers’ data centers. The current AI server work with Nvidia, analysts say, is a natural outcome of that long track record.
Today, Foxconn says it ranks among the world’s largest suppliers of both general-purpose and AI servers, with a market share near 40% in each category. Its approach often includes putting capital to work earlier than peers, according to Kuo. He pointed to past investments for Apple and similar moves for Nvidia. “In long-term partnerships, Foxconn is more willing to take the initiative,” he said.
Planned factories in Houston, Texas, part of Nvidia’s $500 billion U.S. investment plan, and in Mexico to make AI servers for the U.S. customer reflect that strategy, analysts say. Looking ahead, Foxconn expects AI server revenue to rise more than 170% in the third quarter from a year earlier.
Foxconn’s pivot is part of a wider change in Taiwan’s technology industry
Firms once focused on consumer devices, Foxconn on iPhones, and companies like Quanta Computer (2382.TW) and Wistron Corp (3231.TW) on notebooks, are now channeling more resources into AI servers.
The results are showing up in sales. Nvidia partner Wistron reported revenue growth of 92.7% for January to July.
Quanta posted a 65.6% rise over the same period. “The monthly sales jump for Taiwan ODMs in the first half of 2025 is evidence of this trend,” said Robert Cheng, head of Asia technology hardware research at BofA Global Research, referring to original design manufacturers that build products for clients.
Chris Wei of Taiwan’s Market Intelligence & Consulting Institute said the fast shift was helped by Taiwan’s supply chain, which has worked with U.S. tech giants on data-center gear for about 10 years. He estimates Taiwan ships about 80% of all servers and over 90% of AI servers.
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