Investment Rating - The report maintains a "Buy" rating for Foxconn Industrial Internet (FII) with a revised target price of Rmb31.11, reflecting an upside potential of 17.9% from the current price of Rmb26.38 [16][17]. Core Insights - FII's 2Q25 net income guidance is between Rmb6.7 billion and Rmb6.9 billion, with a midpoint of Rmb6.8 billion, representing a 31% quarter-over-quarter increase and a 50% year-over-year increase [1]. - The company is experiencing significant growth in cloud computing revenues, projected to exceed 50% year-over-year, and AI server revenues are expected to grow over 60% year-over-year [1]. - FII's revenues from cloud service providers (CSPs) increased by over 150% year-over-year in 2Q25, and revenues from 800G switches are projected to be three times higher than in 2024 [1]. - The report anticipates a compound annual growth rate (CAGR) of 29% for net income from 2025 to 2027, with AI server revenues expected to rise from 29% in 2024 to 68% by 2027 [1]. Financial Projections - The report revises net income estimates upward by 3%, 4%, and 6% for 2025, 2026, and 2027 respectively, due to higher revenue expectations [5]. - FII's revenue projections for 2025E, 2026E, and 2027E are Rmb850.1 billion, Rmb1,130.6 billion, and Rmb1,274.5 billion respectively, reflecting increases of 5%, 10%, and 9% from previous estimates [8]. - The gross profit (GP) for 2025E is revised to Rmb49.9 billion, with operating profit (OP) at Rmb31.4 billion and net income at Rmb27.6 billion [8]. Market Position and Competitive Analysis - FII is positioned as a leading supplier in the AI server market, particularly in rack-level AI servers, supported by a comprehensive supply chain and global production capabilities [5][9]. - The target price is based on a price-to-earnings (P/E) multiple of 16x for 2026E, reflecting a market re-rating on AI servers [10][15].

BofA Securities analyst Wamsi Mohan observed that from 2006 to 2024, server market revenues grew at a 9% compound annual rate, while unit volumes rose by 4% annually. Looking ahead, he expects artificial intelligence to drive most of the revenue growth in the server market over the next six years.Mohan projected server market revenues to grow at a 25% annual rate between 2024 and 2030, with unit shipments increasing at a 7% annual pace.Also Read: Dell, Hewlett-Packard, Super Micro Set To Benefit From Nvidia ...

BofA Securities analyst Ruplu Bhattacharya initiated coverage on Super Micro Computer SMCI with an Underperform rating and a price target of $35 on Wednesday.Bhattacharya resumed coverage of Super Micro with an Underperform rating and a price objective of $35 (~29% potential downside). The analyst cited rising competition in the AI server and rack market as a reason for margins staying under pressure.Also Read: Super Micro Accelerates European Footprint To Meet Exploding AI NeedsHe also noted that limited a ...

Group 1 - BofA Securities has resumed coverage on Super Micro Computer (SMCI) with an 'Underperform' rating and a price target of $35, indicating a potential downside of approximately 28.5% from current levels [1] - SMCI stock closed at $49.11 on July 8, reflecting a 4.25% gain from the previous session, but experienced a 1.34% decline in premarket trading [2] - Despite BofA's bearish outlook, the broader Wall Street sentiment is more optimistic, with a "Moderate Buy" consensus based on 13 analysts' price targets, including 6 Buy ratings, 6 Hold ratings, and 1 Sell rating [3] Group 2 - The average 12-month price target for SMCI is $41.42, suggesting a potential downside of 15%, with forecasts varying from a high of $70.00 to a low of $24.00 [5] - Super Micro is projected to achieve strong revenue growth, with sales expected to increase nearly 48% to $22 billion in FY'25 and continue growing by 35% to approximately $30 billion in FY'26 due to robust data center spending [6] - The company's close ties to Nvidia's GPU ecosystem position it favorably to benefit from the upcoming Blackwell GPU ramp, although margin pressures from costly liquid-cooling systems and heightened competition may impact profitability in the near term [7]

CEO of Supermicro Charles Liang speaks during the Reuters NEXT conference in New York City, U.S., December 10, 2024.PARIS — Super Micro plans to increase its investment in Europe, including ramping up manufacturing of its AI servers in the region, CEO Charles Liang told CNBC in an interview that aired on Wednesday.The company sells servers which are packed with Nvidia chips and are key for training and implementing huge AI models. It has manufacturing facilities in the Netherlands, but could expand to other ...

Core Viewpoint - The Trump administration, particularly through trade advisor Peter Navarro, is intensifying pressure on Apple to relocate its iPhone manufacturing from China to the United States, criticizing CEO Tim Cook for not making sufficient progress in this area [1][3][9]. Group 1: Pressure from the Trump Administration - Navarro expressed confusion over Apple's continued reliance on China for iPhone production, suggesting that advanced manufacturing techniques and AI advancements should enable production elsewhere, including the U.S. [2] - President Trump has made Apple a focal point in his push for domestic manufacturing, demanding that all iPhones sold in the U.S. be manufactured domestically and threatening a 25% tariff on devices made abroad [3][14]. - Trump has communicated directly with Cook, expressing dissatisfaction with Apple's expansion in India and emphasizing the need for production to occur in the U.S. [9][10]. Group 2: Apple's Manufacturing Strategy - Apple currently assembles the majority of its iPhones in China but is gradually shifting some production to India to diversify its supply chains and mitigate rising tariff costs [7][11]. - Analysts argue that fully relocating iPhone production to the U.S. would be logistically and economically impractical, with estimates suggesting a domestically manufactured iPhone could cost as much as $3,500 [8]. - Despite pledges to assemble some products in the U.S., such as the $3,000 Mac Pro, Apple continues to produce very few devices domestically [8]. Group 3: Challenges of Relocation - China's manufacturing ecosystem offers advantages such as a vast skilled workforce, with a single supplier able to hire 3,000 workers overnight, which is unmatched elsewhere [11]. - China graduates approximately 600,000 engineers annually compared to 70,000 in the U.S., providing the technical talent necessary for Apple's complex devices [12]. - The overall cost of production in China remains lower than in the U.S. due to established infrastructure, logistics networks, and government incentives like subsidies and tax breaks, despite rising labor costs [13].

7 July 2025 | 7:34AM HKT Exhibit 1: Huaqin revenue by products 14% 24% 36% 41% 45% - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2022 2023 2024 2025E 2026E 2027E 2028E Smartphones PCs Smart wearables AI servers General servers Switch Others Blended revenues to grow at +29% CAGR in 2024-28E Rmb m Huaqin Technology (603296.SS): AI servers and Switch in expansion; Data center to up to 51% of revenues by 2028E; Buy (on CL) We initiated Huaqin at Buy in April (report link); the stock is on the APAC Co ...

Foxconn reported 15.8% growth in quarterly sales on robust demand for AI servers and iPhones. https://t.co/XwcyJtpZIa ...

There is this like constant tracking of the launch and ramp of in videos latest generation server design that has the latest generation chip and chip combination of that core wave goes first. What do you make of that. But when I look at videos release cycle, they're on a one year rhythm.And in between that now they are launching the Blackwell Ultra before the Rubin series comes online. And look they're almost giving a 50% performance upgrade with the Blackwell Ultra in terms of token overpriced testing. So ...

There will be many winners as infrastructure is built to support the huge and increasing computing power needed for artificial intelligence (AI) applications. Nvidia continues to pave the way and has already been a huge beneficiary thanks to its leading advanced chips, software, and engagement with developers.Nvidia's revenue has soared from what was then a record $61 billion in fiscal 2024 to more than $130 billion in its fiscal year 2025, ended Jan. 26. That growth continues as sales in the first half of ...