Foxconn Could See Multi-Year Growth Ahead Amid AI Buildout

Dow Jones
Aug 20

0447 GMT - Foxconn Technology could see multi-year growth amid strong GPU demand, accelerating contributions from application-specific integrated circuits and a ramp up in Nvidia's Vera Rubin platform, Barclays analysts say in a research note. The Vera Rubin rack could contribute over 50% of Foxconn's 2027 AI server rack revenue after entering mass production earlier this year, they say. Meanwhile, as ASIC is becoming an increasingly important growth driver, Barclays estimate they will to contribute 10%-20% of AI server revenue this year. However, Foxconn's 2H gross margin could be weighed by the Vera Rubin ramp up, given higher hardware costs and complex manufacturing requirements, they say. However, stronger ASIC contribution, in-house components, and robust co-packaged optics growth should partially mitigate the pressure, they add. Shares are at NT$245.50.

 

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