Foxconn's AI Play: How NT$7T Revenue Ambitions Are Fueling the Next Tech Revolution

Foxconn's 2025 revenue target of NT$7 trillion (US$213 billion) is no longer just a number—it's a blueprint for dominance in the AI era. With AI server sales surging 50% year-over-year in Q1 2025 and net profits soaring 91% to NT$42.12 billion, the company is proving that its pivot to AI infrastructure is no gamble. But can Foxconn sustain this momentum amid currency headwinds and trade wars? The answer lies in its ecosystem integration, partnerships with industry titans like NVIDIA, and a bold vision for “sovereign AI.”

The AI Server Engine: Powering Explosive Growth

Foxconn's partnership with NVIDIA is the linchpin of its growth strategy. As the sole assembler of NVIDIA's Blackwell-powered GB200 servers—priced at $30k–$40k each—the company has already captured over 50% of its server sales from this segment. With quarterly AI server shipments expected to double in Q2 2025, Foxconn is on track to hit a staggering $33 billion in AI server revenue by year-end. These servers, designed for data centers and advanced AI applications, are priced 40% higher than traditional servers, driving margin expansion.

The demand is structural: global AI server sales are projected to hit $298 billion by 2025, with 70% of all server sales AI-driven. Foxconn's first-mover advantage here is unmatched. Its Guadalajara plant in Mexico, now scaling to produce 20,000 servers annually, and its $3.7 billion semiconductor plant in India with HCL Group, are strategic bets to insulate against U.S. tariffs and global supply chain disruptions.

Beyond Servers: The AI Ecosystem Play

Foxconn isn't just building servers—it's architecting an AI ecosystem. Its partnership with NVIDIA extends to humanoid robotics, aiming to deploy these in healthcare and smart cities. The “sovereign AI” initiative, led by Chairman Young Liu, positions Foxconn as a supplier of end-to-end AI infrastructure, enabling nations to build their own AI ecosystems without relying on foreign data. This vision aligns with governments' push for tech sovereignty, opening doors to contracts in countries like Taiwan, where Foxconn is co-building a 10,000-GPU supercomputer with the National Science and Technology Council.

Meanwhile, Foxconn's foray into electric vehicles (EVs) with Mitsubishi and Nissan hints at a broader strategy to dominate the next-gen tech stack—from semiconductors to AI-driven transportation.

Risks? Yes. But the Catalysts Are Clear

Currency fluctuations and trade policies remain threats. The Taiwan dollar's 8% YTD appreciation has already eroded 24% of projected revenue, while U.S. tariffs on Mexican imports could disrupt production. However, Foxconn's geographic diversification—expanding in India and Vietnam—buffers these risks. The company's Q2 earnings, expected to show “high double-digit AI server growth,” will be a critical test.

Why Invest Now?

Foxconn is not just a manufacturer—it's the backbone of the AI infrastructure boom. With NVIDIA's Blackwell GPUs setting new benchmarks for AI compute power, Foxconn's role as their sole assembler is a moat against competitors. Even with short-term headwinds, the $500 billion U.S. AI market is a tailwind that can't be ignored.

Analysts project Foxconn's stock could hit NT$60+ by mid-2026 if AI adoption accelerates. A “buy-the-dip” strategy, paired with hedging against currency risks via USD/NT$ forwards, makes sense here.

Final Call: Foxconn's NT$7 trillion target isn't just achievable—it's a catalyst for a tech revolution. With AI infrastructure spending set to explode, now is the time to position for the company's next chapter. The risks are real, but the upside in owning a critical supplier to the AI era is undeniable.

Act now—before the servers sell out.