By Yang Jianyong

Since the start of the year, Foxconn Industrial Internet's share price has soared, pushing its market capitalization past the trillion-yuan mark, currently standing at 1.07 trillion yuan. This year alone, the cumulative increase has reached 170%, highlighting the immense opportunities presented by large AI models and investors' enthusiasm for the commercial potential of AI. However, it's crucial to note that amid this continuous rise, profit-taking risks are accumulating, necessitating caution against potential volatility following the sharp increase.

In the generative AI era, Foxconn Industrial Internet has capitalized on the burgeoning demand for computing power from large AI models, experiencing robust revenue growth and substantial profits. This has fueled its impressive performance in the capital market. In the first half of 2025, revenue surged to 360.76 billion yuan, a year-on-year increase of 35.58%, while net profit climbed to 12.113 billion yuan, up 38.61%, demonstrating robust profitability.

A key driver of this demand for computing power is the investment by global cloud giants in AI infrastructure. Together, Microsoft, Google, Amazon, and Meta are expected to invest over $320 billion in AI in 2025. Domestically, Tencent, Alibaba, and ByteDance have also made significant investments in AI infrastructure. Alibaba alone plans to invest 380 billion yuan over the next three years to build cloud and AI hardware infrastructure.

This global trend of expanding capital expenditures underscores the strategic importance of large AI model services in technological competition. With ample cash reserves and significant free cash flows, these cloud giants will continue to heavily invest in data centers in the coming years to enhance their AI market competitiveness, thereby significantly boosting demand for computing power.

The surge in demand for underlying chips and high-performance AI servers for large models has also been pronounced. NVIDIA stands out as the primary beneficiary of this AI wave, experiencing rapid growth in revenue, net profit, and market capitalization. It became the first company in the world to surpass a market capitalization of $4 trillion, effectively capturing the market opportunities presented by large AI models.

In China, Cambricon and Foxconn Industrial Internet are undoubtedly the most notable players. Notably, Cambricon has achieved substantial breakthroughs in operational performance, with revenue skyrocketing and reversing its long-term loss situation. As a result, Cambricon has emerged as a sought-after AI chip vendor, with its share price once surpassing that of Moutai, earning it the moniker "Cambrian King" and a market capitalization of nearly 620 billion yuan.

For Foxconn Industrial Internet, the primary driver of its performance is AI servers. As technology giants build massive AI infrastructures to secure technological dominance and market leadership in the generative AI era, the sustained and intense investment in computing power will undoubtedly provide explosive growth opportunities for core hardware suppliers such as AI servers and high-speed switches.

The ongoing expansion of capital expenditures by global large cloud service providers for AI infrastructure construction has injected robust momentum into Foxconn Industrial Internet's cloud computing business. Consequently, computing power services have become the company's largest revenue segment, accounting for over 60% of total revenue. The proportion of AI servers within the cloud computing business has steadily increased, serving as the primary engine driving overall performance growth.

In the second quarter of 2025, Foxconn Industrial Internet's overall server revenue grew by over 50%, with cloud service provider server revenue increasing by over 150% year-on-year and AI server revenue rising by over 60% year-on-year. The GB200 series products achieved mass production ramp-up, with continuous yield rate improvements and quarterly shipment increases.

Advancements in large model technology are ushering in an era of growth, offering broader development prospects for efficient AI servers. According to TrendForce data, the demand for AI servers will continue to grow in 2025, with a high average selling price (ASP) contributing to a production value of $298 billion, accounting for over 70% of the overall server production value.

As a leading supplier of core hardware such as AI servers and high-speed switches, Foxconn Industrial Internet is facing robust demand in the AI sector. The company has consistently increased its R&D investment, focusing on key areas like AI infrastructure. Simultaneously, it is accelerating global capacity expansion and enhancing capacity layout across multiple regions to ensure timely shipments of AI servers and other products, further solidifying its core position in the AI computing power hardware supply chain.

Finally, the rapid development of generative AI is presenting immense development opportunities across various industries. As the cornerstone of AI infrastructure, the demand for AI computing power is poised for even faster growth. For computing power vendors, this presents unprecedented development opportunities.

During the 2025 half-year performance presentation, Foxconn Industrial Internet stated that according to the latest guidance from major North American cloud service providers, the industry outlook remains positive for 2025, with an even more optimistic development trajectory anticipated for 2026 as shipments and pace surpass market expectations. It was also noted that, driven by the gradual expansion of shipment scale and optimization of product mix, next year is expected to witness higher growth contributions in revenue and profit compared to this year.

Foxconn Industrial Internet's performance underscores its profound benefit from the explosive growth in demand for computing power, with AI serving as a core driver of its steady development. The company is poised to continue benefiting from the rising demand for computing power, positively impacting its performance and fueling robust growth momentum.

Yang Jianyong is a contributor to Forbes China and expresses only personal views. He specializes in in-depth analysis of cutting-edge technologies, including artificial intelligence, large AI models, the Internet of Things, cloud services, and smart homes.