Apple Inc. ( AAPL ) and Nvidia Corp. ( NVDA ) supplier Foxconn, also known as Hon Hai Technology, posted record revenue in the fourth quarter driven by higher cloud and networking products revenue and strong demand from AI servers.

What Happened: According to the company’s unaudited monthly revenue report for December, Foxconn’s fourth-quarter revenue rose 15.17% annually and 15.03% sequentially to a record high of NT$2,132.3 billion or $64.83 billion.

“Cloud and networking products, computing products, and components and other products showed strong year-on-year growth, while smart consumer electronics remained flattish,” according to the company.

The cumulative revenue for the full year rose by 11.37% year-on-year to NT$6,859.9 billion or $208.59 billion. Whereas, December’s monthly revenue rose by 42.31% year-on-year to NT$654.8 billion or $19.9 billion.

Although it was down 2.64% on a monthly basis, as compared to November.

See Also: Nvidia's ( NVDA ) New Superchip Delivers 8,470 Times The Computing Performance Of Supercomputer That Jensen Huang Donated To OpenAI

Why It Matters: Foxconn, renowned for manufacturing Apple ( AAPL ) products, is capitalizing on the burgeoning artificial intelligence market. The company has entered the server production sector, supplying crucial GB200 chips to Nvidia ( NVDA ). To further solidify its position, Foxconn is establishing the world’s largest manufacturing facility for these AI servers in Mexico.

This strategic move aligns with Foxconn’s vision to leverage the growing AI market. During the company’s annual tech day in Taipei in October, Chairman Young Liu emphasized Foxconn’s cutting-edge liquid cooling and heat dissipation technologies, essential for supporting the demanding infrastructure of GB200 servers.

The significance of the company’s partnership with Nvidia ( NVDA ) was further highlighted by Benjamin Ting, Foxconn’s senior vice president for cloud enterprise solutions. At the same event, Ting confirmed the construction of the largest GB200 production facility globally, although he declined to specify the location.

He and Nvidia’s vice president for AI and robotics, Deepu Talla, jointly emphasized the strong market demand for Nvidia’s Blackwell platform.

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