Foxconn's AI Server Sales Surpass iPhones, Promises OpenAI Update Next Week
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2025
0mins
Should l Buy GOOG?
Source: TipRanks
Strong Earnings Report: Foxconn reported a 17% year-over-year profit increase to $1.89 billion for Q3, surpassing analyst expectations, primarily driven by demand for AI servers.
Shift in Revenue Sources: For the second consecutive quarter, Foxconn's cloud and networking unit, which includes AI servers, generated more revenue than its smartphone and consumer products unit, indicating a trend in tech spending.
Future Outlook: Foxconn anticipates continued growth in AI-related revenue for Q4 and expresses optimism about AI demand through 2026, despite caution regarding currency risks and geopolitical pressures.
Upcoming Announcement: Foxconn plans to hold a tech event in Taipei next week, where Chairman Young Liu hinted at a potential collaboration with OpenAI, although details remain undisclosed.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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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- Overreaction in Market: While efficiency gains may increase demand, Micron projects the high-bandwidth memory market to grow from $35 billion to $100 billion, suggesting that supply constraints remain, and the current stock decline could represent a buying opportunity.
- Open Source Impact: By open-sourcing the TurboQuant algorithm, Google allows all AI companies to leverage this breakthrough, potentially increasing demand for memory chips and further impacting market prices and supply chains.
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See More
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- Overreaction in the Market: Despite the potential for increased demand due to efficiency gains, the market's bearish reaction towards Micron seems excessive, especially as the company projects the high-bandwidth memory market to grow from $35 billion to $100 billion, indicating robust future demand.
- Impact of Jevons Paradox: As memory becomes more efficient, demand may actually rise, suggesting that Micron's market position might not be fundamentally threatened, potentially presenting a buying opportunity for investors.
- Cautious Investor Approach: While the TurboQuant breakthrough is significant, investors should monitor consumer memory prices to assess the risk of falling prices for Micron, remaining vigilant to avoid potential losses.
See More
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- Algorithm Efficiency Boost: Google's TurboQuant algorithm reduces memory usage by at least 6x and speeds up processing by up to 8x without any accuracy loss, potentially decreasing memory demand by 83%.
- Market Reaction: Following this announcement, shares of memory chipmakers Micron Technology and Sandisk fell by 10% and 14%, respectively, as investors feared a significant drop in demand, although some experts caution that these fears may be overblown.
- Historical Insight: The Jevons Paradox suggests that increased efficiency can lower costs and ultimately increase demand; historical examples, such as improved fuel efficiency in cars leading to higher fuel consumption, indicate that memory chip demand may not decline as expected.
- Investment Opportunity: Despite the initial pullback in Micron and Sandisk stocks, analysts believe that the launch of TurboQuant will drive further AI adoption and strengthen demand for memory chips, with Mizuho analysts reiterating their outperform ratings, suggesting this is a buying opportunity.
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