Latest news with #AI-boom
Time of India
a day ago
- Business
- Time of India
Foxconn shifts from Apple to AI servers for growth in Taiwan tech sector
Taiwan's Foxconn, which rose to become a global tech manufacturing juggernaut by assembling millions of iPhones, can now say its main business is no longer Apple as it takes advantage of the AI-boom to diversify its income. Its revenue from making AI servers and other cloud and networking products, including for major customer Nvidia, surpassed smart consumer products such as iPhones for the first time in the second quarter, marking the culmination of a shift that began years ago and has swept through Taiwan's tech industry. Foxconn's heavy reliance on the smartphone business has long been viewed by investors as a significant risk, as demand growth for new iPhones has gradually weakened since they were first introduced nearly two decades ago, leaving the top iPhone assembler grappling with slowing sales momentum, analysts said. Wary of the risk, Foxconn Chairman Young Liu has been championing new businesses such as AI servers, electric vehicles and semiconductors since taking the top job in 2019. While its expansion into EVs and chips has yet to show a meaningful contribution to its topline, Foxconn's success in AI server manufacturing - the company is Nvidia's biggest server maker - is the result of its early bets before the technology was thrust into the limelight with the advent of ChatGPT in late 2022. Consumer electronics accounted for 35 per cent of Foxconn's total revenue in the second quarter, while cloud and networking business represented 41%. In 2021, consumer electronics represented 54 per cent of its revenue. The firm's prudent wagers years back helped it cultivate a now-prized relationship with the U.S. AI chip firm and other major AI players, analysts said. "The company has been in the business for years, meeting higher quality requirements, diversifying assembly and operations across sites, and pursuing vertical integration," said Ming-Chi Kuo, an analyst at TF International Securities. Foxconn began producing reference designs for Nvidia's graphics cards around 2002 and started making general-purpose servers for cloud service providers' data centres as early as around 2009. Its AI server business with Nvidia is in many ways the culmination of that history, analysts said. Foxconn says it is now one of the world's largest suppliers of both general-purpose and AI servers, with a market share of nearly 40 per cent in each. The company has also shown a willingness to commit investment to a project at an earlier stage than other companies, Kuo said, citing its past investments for Apple and similar moves for Nvidia. "In long-term partnerships, Foxconn is more willing to take the initiative," he said. Foxconn's plan to build factories in Houston, Texas - part of Nvidia's $500 billion U.S. investment plan - and in Mexico to produce AI servers for the U.S. client underscores this strategy, analysts said. Foxconn now expects its AI server revenue would grow more than 170 per cent in the third quarter year-on-year. Foxconn and Nvidia declined to comment. Apple did not respond to request for comment. BROADER SHIFT The shift at Foxconn mirrors a broader trend in Taiwan's technology sector, where companies once centred on consumer electronics - such as Foxconn with iPhones, and Quanta Computer and Wistron Corp with notebooks - are now investing heavily in AI servers. Nvidia partner Wistron's revenue for January to July rose 92.7%, while Quanta's grew 65.6 per cent in the same period. "The monthly sales jump for Taiwan ODMs in the first half of 2025 is evidence of this trend," said Robert Cheng, head of Asia technology hardware research at BofA Global Research, referring to original design manufacturers like Foxconn that contract manufacture products for their clients. Their fast transition into AI servers is also the result of Taiwanese tech supply chain working closely with U.S. tech giants on data centre infrastructure work for a decade now, according to Chris Wei, industry consultant at Taiwan's Market Intelligence & Consulting Institute. He estimates Taiwan accounts for about 80% of global server shipments and more than 90 per cent of AI servers. Cheng agrees. "We think this shift toward AI servers, whatever form it takes, is good for Taiwan's tech industry," he said, noting Taiwanese firms' ability to rapidly shift to cater to changing needs from their customers.
CNBC
a day ago
- Business
- CNBC
This 'picks-and-shovels' AI play is breaking out of resistance after seven years, the charts show
After seven years of trying to break through resistance, Bloom Energy (BE) has finally done it. Bloom Energy is known as a "picks-and-shovels" infrastructure play for the booming artificial intelligence build-out. Prior to the AI-boom, BE was focused on being a clean distributed power provider for businesses that needed reliability and lower emissions. Now, BE provides on-site power generation boxes (sometimes called Bloom Boxes) that supply always-on electricity with lower carbon emissions than the grid, that can also run on hydrogen with zero emissions, to hospitals, factories, utilities, and — you guessed it — also to data centers. In fact, Bloom just signed a deal with Oracle to supply power to their data centers. AI data centers are power hogs. Training and running large AI models requires a ton of electricity. Bloom's solid oxide fuel cells can sit next to the data centers and generate clean, reliable power around the clock and independent of the grid. Again, Bloom is not a chips / GPU play like Nvidia, but it helps solve the energy bottleneck that AI power demand is creating. Looking at the weekly chart, you can see the seven-year resistance (price ceiling level) that's been tested three times. Just last month, price finally closed above the $38 level creating a breakout. Thus far in August, we're holding above the newly formed support level and, as a result, we've begun building positions in our Active Opps model at Inside Edge Capital . Notice the cumulative shares traded in July of 240 million, the second-largest on record. The massive volume done in July and November 24 is certainly investors discounting the massive expected swing into profitability in 2026 to 53 cents GAAP earnings per share following a loss of 5 cents per share in 2025 as shown at the bottom of the weekly chart. Not shown is non-GAAP earnings that swung into profitability in 2024 with 28 cents per share earned compared to 10 cents per share lost in 2023 and a loss of 41 cents per share in 2022. Turning to the daily chart, we get a closer look at the seven-year $36-$38 resistance zone that was heavily traded in late July and early this month before finally pushing higher. That big volume spike on July 24 was the date the Oracle deal was announced . The prior three quarters showed a solid swing into profitability and consistent top line growth (red rectangle). The next three quarters look to be quiet in terms of growth, but again I believe investors are building positions ahead of the 2026 swing into more defined profitability. Turning back to entry tactics, the stock is down about 7% as a type of news that Vanguard trimmed its holding by about 0.3% but still owns approximately 19 million shares. The company is also showing about 9% short interest with an expected three days required to cover that short based on average daily trading activity. In our Active Opps portfolio, we just established a 3% allocation and will look to increase the stake to 5% or more if the key $38-$36 newly formed support zone holds. -Todd Gordon, Founder of Inside Edge Capital, LLC We offer active portfolio management and regular subscriber updates like the idea presented above. DISCLOSURES: Gordon owns BE personally and in his wealth management company Inside Edge Capital. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
The Hindu
2 days ago
- Business
- The Hindu
Foxconn's Apple era fades as AI servers drive growth in Taiwan tech sector
Taiwan's Foxconn, which rose to become a global tech manufacturing juggernaut by assembling millions of iPhones, can now say its main business is no longer Apple as it takes advantage of the AI-boom to diversify its income. Its revenue from making AI servers and other cloud and networking products, including for major customer Nvidia, surpassed smart consumer products such as iPhones for the first time in the second quarter, marking the culmination of a shift that began years ago and has swept through Taiwan's tech industry. Foxconn's heavy reliance on the smartphone business has long been viewed by investors as a significant risk, as demand growth for new iPhones has gradually weakened since they were first introduced nearly two decades ago, leaving the top iPhone assembler grappling with slowing sales momentum, analysts said. Wary of the risk, Foxconn Chairman Young Liu has been championing new businesses such as AI servers, electric vehicles and semiconductors since taking the top job in 2019. While its expansion into EVs and chips has yet to show a meaningful contribution to its topline, Foxconn's success in AI server manufacturing (the company is Nvidia's biggest server maker) is the result of its early bets before the technology was thrust into the limelight with the advent of ChatGPT in late 2022. Consumer electronics accounted for 35% of Foxconn's total revenue in the second quarter, while cloud and networking business represented 41%. In 2021, consumer electronics represented 54% of its revenue. The firm's prudent wagers years back helped it cultivate a now-prized relationship with the U.S. AI chip firm and other major AI players, analysts said. "The company has been in the business for years, meeting higher quality requirements, diversifying assembly and operations across sites, and pursuing vertical integration,' said Ming-Chi Kuo, an analyst at TF International Securities. Foxconn began producing reference designs for Nvidia's graphics cards around 2002 and started making general-purpose servers for cloud service providers' data centres as early as around 2009. Its AI server business with Nvidia is in many ways the culmination of that history, analysts said. Foxconn says it is now one of the world's largest suppliers of both general-purpose and AI servers, with a market share of nearly 40% in each. The company has also shown a willingness to commit investment to a project at an earlier stage than other companies, Kuo said, citing its past investments for Apple and similar moves for Nvidia. 'In long-term partnerships, Foxconn is more willing to take the initiative,' he said. Foxconn's plan to build factories in Houston, Texas — part of Nvidia's $500 billion U.S. investment plan — and in Mexico to produce AI servers for the U.S. client underscores this strategy, analysts said. Foxconn now expects its AI server revenue would grow more than 170% in the third quarter year-on-year. Foxconn and Nvidia declined to comment. Apple did not respond to request for comment. The shift at Foxconn mirrors a broader trend in Taiwan's technology sector, where companies once centred on consumer electronics — such as Foxconn with iPhones, and Quanta Computer and Wistron Corp with notebooks — are now investing heavily in AI servers. Nvidia partner Wistron's revenue for January to July rose 92.7%, while Quanta's grew 65.6% in the same period. "The monthly sales jump for Taiwan ODMs in the first half of 2025 is evidence of this trend,' said Robert Cheng, head of Asia technology hardware research at BofA Global Research, referring to original design manufacturers like Foxconn that contract manufacture products for their clients. Their fast transition into AI servers is also the result of Taiwanese tech supply chain working closely with U.S. tech giants on data centre infrastructure work for a decade now, according to Chris Wei, industry consultant at Taiwan's Market Intelligence & Consulting Institute. He estimates Taiwan accounts for about 80% of global server shipments and more than 90% of AI servers. Cheng agrees. "We think this shift toward AI servers, whatever form it takes, is good for Taiwan's tech industry," he said, noting Taiwanese firms' ability to rapidly shift to cater to changing needs from their customers.
Business Times
2 days ago
- Business
- Business Times
Foxconn's Apple era fades as AI servers drive growth in Taiwan tech sector
[TAIPEI] Taiwan's Foxconn, which rose to become a global tech manufacturing juggernaut by assembling millions of iPhones, can now say its main business is no longer Apple as it takes advantage of the AI-boom to diversify its income. Its revenue from making AI servers and other cloud and networking products, including for major customer Nvidia, surpassed smart consumer products such as iPhones for the first time in the second quarter, marking the culmination of a shift that began years ago and has swept through Taiwan's tech industry. Foxconn's heavy reliance on the smartphone business has long been viewed by investors as a significant risk, as demand growth for new iPhones has gradually weakened since they were first introduced nearly two decades ago, leaving the top iPhone assembler grappling with slowing sales momentum, analysts said. Wary of the risk, Foxconn Chairman Young Liu has been championing new businesses such as AI servers, electric vehicles and semiconductors since taking the top job in 2019. While its expansion into EVs and chips has yet to show a meaningful contribution to its topline, Foxconn's success in AI server manufacturing - the company is Nvidia's biggest server maker - is the result of its early bets before the technology was thrust into the limelight with the advent of ChatGPT in late 2022. Consumer electronics accounted for 35 per cent of Foxconn's total revenue in the second quarter, while cloud and networking business represented 41 per cent. In 2021, consumer electronics represented 54 per cent of its revenue. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The firm's prudent wagers years back helped it cultivate a now-prized relationship with the US AI chip firm and other major AI players, analysts said. 'The company has been in the business for years, meeting higher quality requirements, diversifying assembly and operations across sites, and pursuing vertical integration,' said Ming-Chi Kuo, an analyst at TF International Securities. Foxconn began producing reference designs for Nvidia's graphics cards around 2002 and started making general-purpose servers for cloud service providers' data centres as early as around 2009. Its AI server business with Nvidia is in many ways the culmination of that history, analysts said. Foxconn says it is now one of the world's largest suppliers of both general-purpose and AI servers, with a market share of nearly 40 per cent in each. The company has also shown a willingness to commit investment to a project at an earlier stage than other companies, Kuo said, citing its past investments for Apple and similar moves for Nvidia. 'In long-term partnerships, Foxconn is more willing to take the initiative,' he said. Foxconn's plan to build factories in Houston, Texas — part of Nvidia's US$500 billion US investment plan — and in Mexico to produce AI servers for the US client underscores this strategy, analysts said. Foxconn now expects its AI server revenue would grow more than 170 per cent in the third quarter year-on-year. Foxconn and Nvidia declined to comment. Apple did not respond to request for comment. Broader shift The shift at Foxconn mirrors a broader trend in Taiwan's technology sector, where companies once centred on consumer electronics — such as Foxconn with iPhones, and Quanta Computer and Wistron Corp with notebooks — are now investing heavily in AI servers. Nvidia partner Wistron's revenue for January to July rose 92.7 per cent, while Quanta's grew 65.6 per cent in the same period. 'The monthly sales jump for Taiwan ODMs in the first half of 2025 is evidence of this trend,' said Robert Cheng, head of Asia technology hardware research at BofA Global Research, referring to original design manufacturers like Foxconn that contract manufacture products for their clients. Their fast transition into AI servers is also the result of Taiwanese tech supply chain working closely with US tech giants on data centre infrastructure work for a decade now, according to Chris Wei, industry consultant at Taiwan's Market Intelligence & Consulting Institute. He estimates Taiwan accounts for about 80 per cent of global server shipments and more than 90 per cent of AI servers. Cheng agrees. 'We think this shift toward AI servers, whatever form it takes, is good for Taiwan's tech industry,' he said, noting Taiwanese firms' ability to rapidly shift to cater to changing needs from their customers. REUTERS
Time of India
2 days ago
- Business
- Time of India
Foxconn's Apple era fades as AI servers drive growth in Taiwan tech sector
By Wen-Yee Lee TAIPEI: Taiwan's Foxconn , which rose to become a global tech manufacturing juggernaut by assembling millions of iPhones, can now say its main business is no longer Apple as it takes advantage of the AI-boom to diversify its income. Its revenue from making AI servers and other cloud and networking products, including for major customer Nvidia , surpassed smart consumer products such as iPhones for the first time in the second quarter, marking the culmination of a shift that began years ago and has swept through Taiwan's tech industry. Foxconn's heavy reliance on the smartphone business has long been viewed by investors as a significant risk, as demand growth for new iPhones has gradually weakened since they were first introduced nearly two decades ago, leaving the top iPhone assembler grappling with slowing sales momentum, analysts said. Wary of the risk, Foxconn Chairman Young Liu has been championing new businesses such as AI servers, electric vehicles and semiconductors since taking the top job in 2019. While its expansion into EVs and chips has yet to show a meaningful contribution to its topline, Foxconn's success in AI server manufacturing - the company is Nvidia's biggest server maker - is the result of its early bets before the technology was thrust into the limelight with the advent of ChatGPT in late 2022. Consumer electronics accounted for 35% of Foxconn's total revenue in the second quarter, while cloud and networking business represented 41%. In 2021, consumer electronics represented 54% of its revenue. The firm's prudent wagers years back helped it cultivate a now-prized relationship with the U.S. AI chip firm and other major AI players, analysts said. "The company has been in the business for years, meeting higher quality requirements, diversifying assembly and operations across sites, and pursuing vertical integration," said Ming-Chi Kuo, an analyst at TF International Securities. Foxconn began producing reference designs for Nvidia's graphics cards around 2002 and started making general-purpose servers for cloud service providers' data centres as early as around 2009. Its AI server business with Nvidia is in many ways the culmination of that history, analysts said. Foxconn says it is now one of the world's largest suppliers of both general-purpose and AI servers, with a market share of nearly 40% in each. The company has also shown a willingness to commit investment to a project at an earlier stage than other companies, Kuo said, citing its past investments for Apple and similar moves for Nvidia. "In long-term partnerships, Foxconn is more willing to take the initiative," he said. Foxconn's plan to build factories in Houston, Texas - part of Nvidia's $500 billion U.S. investment plan - and in Mexico to produce AI servers for the U.S. client underscores this strategy, analysts said. Foxconn now expects its AI server revenue would grow more than 170% in the third quarter year-on-year. Foxconn and Nvidia declined to comment. Apple did not respond to request for comment. BROADER SHIFT The shift at Foxconn mirrors a broader trend in Taiwan's technology sector, where companies once centred on consumer electronics - such as Foxconn with iPhones, and Quanta Computer and Wistron Corp with notebooks - are now investing heavily in AI servers. Nvidia partner Wistron's revenue for January to July rose 92.7%, while Quanta's grew 65.6% in the same period. "The monthly sales jump for Taiwan ODMs in the first half of 2025 is evidence of this trend," said Robert Cheng, head of Asia technology hardware research at BofA Global Research, referring to original design manufacturers like Foxconn that contract manufacture products for their clients. Their fast transition into AI servers is also the result of Taiwanese tech supply chain working closely with U.S. tech giants on data centre infrastructure work for a decade now, according to Chris Wei, industry consultant at Taiwan's Market Intelligence & Consulting Institute. He estimates Taiwan accounts for about 80% of global server shipments and more than 90% of AI servers. Cheng agrees. "We think this shift toward AI servers, whatever form it takes, is good for Taiwan's tech industry," he said, noting Taiwanese firms' ability to rapidly shift to cater to changing needs from their customers.
