Apple Declines as Foxconn Partners with Nvidia for AI Development in Light of Trump's Policy Changes—'Evolved Beyond Its Traditional Business'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2025
0mins
Source: Benzinga
Foxconn's Business Shift: Foxconn's AI server division has surpassed its iPhone assembly business in revenue for the first time, with a significant growth of 47% year-over-year in Q2 2025.
AI Server Revenue Growth: The Cloud & Networking Products division generated NT$731.8 billion ($24.32 billion), while the Smart Consumer Electronics division earned NT$634.5 billion ($21.08 billion). AI servers now contribute over half of cloud revenue.
Expansion and Diversification: Foxconn is increasing AI server production in the U.S. and diversifying into electric vehicles, semiconductors, and healthcare robotics, moving away from reliance on Apple as its primary customer.
Partnerships and Industry Impact: Collaborating with Nvidia, Foxconn is developing next-gen server architectures and AI technologies, which may influence the performance of ETFs focused on AI and data centers.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 290.550
Low
239.00
Averages
306.89
High
350.00
Current: 290.550
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
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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