Foxconn Confident in Growth Due to AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 hours ago
0mins
Source: Newsfilter
- Significant Profit Growth: Foxconn reported a 19% year-over-year increase in first-quarter profit this month, exceeding expectations primarily due to strong global demand for AI products, showcasing the company's competitive edge and profitability in the market.
- Surging Capital Expenditure: Capital spending by major cloud service providers has already surpassed $700 billion, with expectations to potentially reach $1 trillion next year, providing Foxconn with immense confidence in its future growth, indicating sustained market demand for AI.
- Expansion Plans: Foxconn anticipates a 30% increase in capital expenditures this year from last year's T$174 billion ($5.55 billion) as it aims to expand manufacturing capacity for AI servers, further solidifying its market position.
- Stock Performance: Despite a 19% rise in Foxconn's shares this year, it underperformed compared to the broader Taiwan index's 54% gain, reflecting differing market perceptions of its growth potential.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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