Foxconn Shares Rise After Chairman Says Met With OpenAI, Plans Nvidia Next
The company has been shifting its focus to high-growth areas, such as making AI servers for U.S. tech giants
- Foxconn’s stock rose 8% to 222.50 New Taiwan dollars, bringing year-to-date gains to 21%, driven by AI enthusiasm.
- Foxconn’s chairman met with OpenAI’s CEO and plans to meet Nvidia’s CEO to discuss potential AI collaborations.
- The company projects a more than 170% revenue gain from its AI server segment this quarter, shifting focus to high-growth areas.
Foxconn Technology’s shares surged in yet another stock jump driven by investor enthusiasm about AI, coming after its chairman said he met with ChatGPT maker OpenAI and plans to meet with chip giant Nvidia.
Frenzied investing in AI has fueled talk of a bubble, but the chairman of Taiwan-listed Foxconn, the world’s largest contract electronics maker, said there is much further to go.
The application of AI is “just at the beginning,” Foxconn’s Young Liu told local reporters on the sidelines of an event on Wednesday, expressing confidence in the market’s potential to keep going from strength to strength.
He also said that Foxconn, formally known as Hon Hai Precision Industry, had met OpenAI Chief Executive Sam Altman at the Taiwanese company’s headquarters to discuss potential future collaborations.
Liu also said he plans to meet Nvidia Chief Executive Jensen Huang later this month to talk about possible collaborations.
Foxconn’s stock jumped 8% to 222.50 New Taiwan dollars, or US$7.26, in Taipei on Thursday, taking year-to-date gains to 21%.
Headlines tying companies to OpenAI, the world’s most valuable startup with a $500 billion valuation, tend to send stocks skyrocketing.
Shares of Advanced Micro Devices jumped 24% after the chip company announced a multibillion-dollar tie-up with OpenAI earlier this month. Another multibillion deal with Broadcom similarly sent the chip maker’s stock up.
News of deals with Nvidia have a similar effect, helping send TSMC shares up 14% so far this month to new record highs.
While no such deals have yet to be publicly announced with Foxconn, the company has been shifting its focus to high-growth areas, such as making AI servers for U.S. tech giants including Amazon and Nvidia.
Foxconn’s revenue from cloud and networking products—including AI servers, topped smart consumer electronics to become its biggest business driver in the second quarter.
The company expects AI servers to keep boosting its top line, projecting a more than 170% revenue gain from the segment this quarter.