A-share Foxconn Industrial Internet turnover hits 10 billion yuan, falls nearly 4%

A-share Foxconn Industrial Internet turnover hits 10 billion yuan, falls nearly 4%

Foxconn Industrial Internet (FII), the manufacturing arm of Foxconn Technology Group, has become the latest company to reach a market capitalization of 1 trillion yuan in China. This significant milestone comes amidst an AI frenzy and highlights the growing importance of the sector in the country's economic landscape.

Shares of FII surged 10% on Friday, the daily maximum permitted in Shanghai, to close at 53.83 yuan. This increase brought the company's market capitalization to 1.07 trillion yuan, equivalent to approximately $150.06 billion [1]. The stock has seen a remarkable rise of over 150% in the current quarter.

FII's achievement marks the first time a tech-hardware company has joined the trillion-yuan club. This development is part of China's broader push to develop artificial intelligence and rising risk appetite, which has contributed to the Shanghai Composite Index reaching a 10-year high earlier this month [1].

As of the market close on Friday, FII became the 10th-most valuable company listed in mainland China, according to financial data platform Wind Information [1]. The company's parent, Foxconn, is the world's largest contract electronics maker and is best known for assembling Apple's iPhones. Foxconn has diversified into high-growth areas such as AI and is now playing an increasingly important role in building AI servers for U.S. tech giants including Amazon and Nvidia.

Foxconn's Nvidia GB200 rack shipments are expected to improve substantially in the third quarter, which could boost FII's market share and lead to stronger profitability in the second half of the year and beyond, according to Citi analysts [1]. Despite the recent rally, Citi analysts still consider FII's shares to be cheap, raising their target price to 60.00 yuan from 48.00 yuan [1].

The AI sector in China has seen significant investor enthusiasm, with shares of AI chip designer Cambricon Technologies more than doubling over the past month to overtake Kweichow Moutai as the most valuable stock in China [1]. HSBC analysts predict that AI will remain a key investment theme in the Chinese market, especially in AI infrastructure, given increased capital expenditure by cloud-service providers and rising AI penetration [1].

References:
[1] https://www.morningstar.com/news/dow-jones/202508291826/foxconn-industrial-internets-market-capitalization-hits-trillion-yuan