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Wednesday, August 14, 2024

Foxconn -- Nvidia -- AI -- August 14, 2024

Locator: 48411AI.

AI, two camps:

  • AI is hyped;
  • AI is not hyped.

I'm in the second camp.

Exhibit A: Foxcon.

Link here.

Foxconn is known internationally because it makes iPhones for Apple — but the Taiwanese tech giant is reaping the benefits from the artificial-intelligence boom, too.

The company’s AI server sales jumped 60% over the second quarter, an earnings report published on Wednesday showed.

Its profit climbed for the fourth straight quarter to 35.045 billion New Taiwanese dollars ($1.08 billion), beating the NT$33.73 billion figure analysts were expecting, according to data from FactSet. Revenue rose 19% to NT$1.551 trillion, a record for the three months ending June 30, powered higher by a 60% surge in AI server sales.

“The performance of AI servers was more robust than expected and drove revenue growth of the group to be better-than-expected,” spokesman James Wu said on an earnings call.

Taipei-listed shares of Hon Hai Precision Industry, as Foxconn is officially called, climbed 2.5% to close at NT$185.50 on Wednesday.

Slumping iPhone sales have been a cause for concern on Wall Street this year—even though Apple has promised to pack the next iteration of its flagship device with a bunch of generative AI features.But Foxconn has sought to diversify away from electronics in recent years and in October expanded an existing partnership with chip maker Nvidia to build a new class of data centers powering AI technology. It has a goal of eventually capturing 40% of the overall server market.

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