Foxconn Confident in AI Growth

Foxconn, the world's largest contract electronics manufacturer, expressed immense confidence in its growth momentum, driven by soaring AI demand. Chairman Young Liu stated that the traditional mid-year slump is no longer occurring and expressed optimism for the second half of the year. He highlighted colossal investments in AI by major cloud service providers, with capital expenditure expected to reach $1 trillion next year, which Foxconn views as its market. Foxconn, a key supplier for Nvidia and Apple Inc., reported a 19% rise in first-quarter profit and plans to increase capital expenditure by 30% this year to expand AI server manufacturing capacity. While some high-end customers faced memory chip shortages, the impact on Foxconn's clients is considered limited through the end of the year. Foxconn's shares have risen, though they have underperformed the broader Taiwan index.