Wall Street is ending 2026 on a generally positive note, with the benchmark S&P 500 Index set to finish the year at a 17% return rate. All eyes are now on technology titans like Nvidia, Microsoft, Alphabet, and Amazon, which have dominated the headlines in 2025, and for good reason.By and large, big technology stocks have outperformed the broad U.S. market in 2025, fueled by strong earnings and momentum in key areas like semiconductors and AI-related companies, with the Nasdaq-100 Index up 19.6% year to dat ...

Investment Rating - The investment rating for Foxconn Industrial Internet is "Buy" with a 12-month price target of Rmb23.80, indicating an upside potential of 24.9% from the current price of Rmb19.06 [9]. Core Insights - The management of Foxconn Industrial Internet remains optimistic about growth in 2025, driven by generative AI, which is expected to significantly boost the company's AI servers and high-speed networking equipment [1][3]. - The company has demonstrated strong growth in cloud computing revenues, which increased by over 50% year-on-year in Q1 2025, with revenues from cloud service providers (CSPs) growing by over 60% year-on-year [3]. - The company is well-positioned to navigate geopolitical tensions due to its global production capabilities and strong management across various operational aspects [3]. Summary by Sections AI Servers Outlook - Management is positive about the AI servers and networking business, expecting continued growth throughout the year. The company has competitive strengths in R&D, automated production, and a comprehensive product offering [3]. - The cloud computing segment's revenue growth is attributed to both AI servers and general servers, with brand customers also showing a growth of over 30% year-on-year [3]. Global Production Sites - The company emphasizes its global production capabilities, which allow it to meet client needs amid geopolitical uncertainties. It has established production sites in the US, including Wisconsin, California, and Texas, capable of producing various AI server models [3]. - The focus on high-value products and automated production in the US enhances yield rates and production efficiency [3]. Switch Business Growth - Management is optimistic about the growth of the switch business, particularly high-speed switches, with revenue growth for 400G and 800G switches projected to be in triple digits for 2024 [4][7]. - The company's 800G switch is already in shipment, contributing to rising revenue, and it serves leading brand customers such as Cisco, Arista, and NVIDIA [4][7].