By Yang Jianyong

Due to the launch of an investigation into its vertical power supply system, Foxconn Industrial Internet has witnessed a sharp decline in its market value. Today, it briefly dipped below the one trillion yuan threshold, reaching 985.5 billion yuan. Despite the company's assertion that the investigation has not significantly impacted its current production, operations, or performance, the market continues to feel the pressure.

Notably, Foxconn Industrial Internet soared to an all-time high on June 3, boasting a total market value of 1.67 trillion yuan. Since then, it has entered a prolonged period of market volatility, with its market value experiencing a substantial drop from its peak. Cumulatively, it has decreased by 650 billion yuan, marking a 40% correction from its highest point.

However, in stark contrast to this significant market retracement, Foxconn Industrial Internet's financial performance has been outstanding. Its revenue has maintained a robust growth trajectory, and the annual revenue scale is projected to surpass the one trillion yuan milestone.

Since the emergence of generative AI, the demand for computing power has surged exponentially. As a company that has greatly benefited from this trend, Foxconn Industrial Internet has achieved remarkable dual growth in both revenue scale and profitability.

In 2025, Foxconn Industrial Internet's revenue reached 902.887 billion yuan, representing a year-on-year increase of 48% and nearing the one trillion yuan mark. This year, the company continues to exhibit significant growth, with revenue reaching 557.9 billion yuan in the first half of 2026, a year-on-year increase of 54.6%. Based on the current growth rate, annual revenue is expected to exceed one trillion yuan.

Most importantly, Foxconn Industrial Internet's profitability is equally remarkable. Its net profit reached 23.7 billion yuan in the first half of the year, a year-on-year increase of 96%. Such a substantial profit scale is uncommon in the market, successfully capitalizing on the rapid growth in computing power demand and propelling the company into a new phase of development.

The key factor lies in the ongoing increase in investment by cloud giants in AI infrastructure to enhance their competitiveness in the AI market. Cloud service providers such as Microsoft, Google, and Amazon are expected to maintain an active investment pace in 2026, with their combined capital expenditures further rising to over 710 billion US dollars.

The global trend of expanding AI expenditures has fueled sustained high demand for high-end computing power equipment. Additionally, the continuous evolution of computing power solutions, such as GPUs and ASICs, has further unlocked industry potential, directly benefiting vendors offering computing power services. This has allowed Foxconn Industrial Internet to reap substantial profits, establishing it as the most profitable AI computing power provider in China.

Foxconn Industrial Internet supplies data center computing power infrastructure products to global cloud service providers. In the first half of 2026, revenue from AI servers for cloud service providers increased by 230% year-on-year, with GPU AI cabinet shipments surging by 3.2 times. Among them, ASIC AI cabinet shipments increased by 3 times, and ASIC CPU server shipments rose by 2.5 times.

Driven by AI, revenue in the cloud computing segment continues to grow at a high rate, increasing by 75.7% year-on-year. This segment serves as the core engine driving overall revenue growth, with its revenue share further increasing. Computing power services have become Foxconn Industrial Internet's largest business segment, transforming this former contract manufacturing giant into the leading AI computing power provider.

It's worth noting that, spurred by the rapid growth in demand for AI large model training and inference, the global data center network architecture is accelerating its evolution towards hyperscale, high bandwidth, and low latency. This has led to sustained growth in the high-speed switch market.

In the first half of 2026, shipments of data center switches above 800G by Foxconn Industrial Internet increased by 1.4 times year-on-year. Meanwhile, CPO all-optical switches have achieved prototype delivery, driving product upgrades towards higher bandwidth and energy efficiency.

Simultaneously, with the continuous evolution of large models from initial knowledge question-and-answer to Agent AI intelligent agents capable of performing tasks, Token usage has surged. This has continuously amplified the overall demand for computing power in the market, leading to increased demand for core hardware such as AI servers and high-speed switches. Consequently, TrendForce has revised upward its estimate for AI server shipment growth in 2026, from the previously estimated 28% to nearly 31%.

The overall shipment volume of AI servers continues to rise, with ongoing dividends being released. This has a positive impact on the performance of companies in the AI supply chain. Meanwhile, as cloud service providers increase their capital expenditures, they demonstrate the long-term growth potential of AI infrastructure construction. As a crucial component of AI infrastructure, AI servers continue to exhibit strong demand in terms of overall shipments.

As a supplier of core hardware such as AI servers and high-speed switches, Foxconn Industrial Internet deepens its presence in key areas such as AI servers and high-speed networks for data centers. This further strengthens its long-term strategic partnerships with global Tier 1 cloud service providers, allowing it to continue benefiting from the growth in demand for computing power and positively impacting its performance. Its high-performance growth also confirms AI as the core driver of its steady development.

However, underlying concerns amidst this prosperity are quietly accumulating. With its market value having corrected by 40% from its peak, there is a stark contrast between its impressive performance and significant retracement. This also suggests that the AI industry is undergoing a drastic value reevaluation.

The views expressed herein represent personal opinions only. My focus lies on in-depth observations of technology sectors such as AI large models, artificial intelligence, industrial robots, IoT, cloud computing, and smart hardware.