A-share Foxconn Industrial rises 0.3% to 53.99 yuan, hits new high with market cap above 1.07T yuan

A-share Foxconn Industrial rises 0.3% to 53.99 yuan, hits new high with market cap above 1.07T yuan

Foxconn Industrial Internet (FII), a manufacturing arm of Foxconn Technology Group, has seen its shares rise by 0.3% to 53.99 yuan, marking a new high and pushing its market capitalization above 1.07 trillion yuan. This significant milestone comes amid China's ongoing push to develop artificial intelligence and rising investor risk appetite [1].

FII's shares have surged over 150% this quarter, with Friday's 10% gain being the daily maximum permitted in Shanghai. The company's market capitalization now stands at 1.07 trillion yuan, equivalent to $150.06 billion. This makes FII the first tech-hardware company to join the trillion-yuan club, joining the likes of state-owned banks and insurance companies, and other high-profile Chinese companies such as Kweichow Moutai, CATL, and BYD [1].

Foxconn, FII's Taiwan-based parent company, is known globally for assembling Apple's iPhones. However, FII has been diversifying into high-growth areas such as AI, playing an increasingly important role in building AI servers for major U.S. tech companies like Amazon and Nvidia. Cloud and networking products, which include AI servers, have become Foxconn's top revenue contributor for the first time in the second quarter [1].

Analysts at Citi have raised their target price for FII to 60.00 yuan from 48.00 yuan, suggesting that the shares are still considered undervalued despite the recent rally. The improvement in production yields expected by FII in the third quarter could further boost its market share and profitability [1].

The success of FII is part of a broader trend in China's AI sector, where investor enthusiasm is being fueled by the country's ambition to develop advanced chips and AI infrastructure. Other notable players in this sector, such as AI chip designer Cambricon Technologies, have seen their shares more than double over the past month [1].

References:
[1] https://www.marketscreener.com/news/foxconn-industrial-internet-s-market-capitalization-hits-trillion-yuan-ce7c50dcd18ef220
[2] https://www.ndtvprofit.com/auto/xiaomis-sedan-crushed-teslas-model-3-in-china-now-its-suv-is-gunning-for-model-y