AI server revenue surged by 60%.
Amid the global wave of technological competition, the performance of AI computing power is just beginning to unfold.
As a core foundry for NVIDIA, Foxconn Industrial Internet's mid-year earnings report has shown outstanding results: both revenue and net income have reached record highs for the same period in history.
In addition, the company achieved a single-quarter revenue of over RMB 200 billion for the first time in the second quarter; notably, Q2 AI Server revenue surged by more than 60% year-over-year.
However, today's opening saw Foxconn Industrial Internet's stock price fall rather than rise after the earnings report.
As of the time of writing, the stock price has fallen by 0.93%, trading at RMB 36.25, with a total market value of approximately RMB 720 billion.
Since the rebound in April, Foxconn Industrial Internet's stock price has shown a strong overall trend, with a cumulative increase of about 123% so far.
AI server revenue surged by 60%.
On the evening of August 10, Foxconn Industrial Internet released its 2025 half-year Earnings Reports.
In the first half of the year, the company achieved revenue of 360.76 billion yuan, a year-on-year increase of 35.58%; and net income attributable to the parent company of 12.113 billion yuan, a year-on-year increase of 38.61%.
In the second quarter, the company's revenue reached 200.345 billion yuan, a year-on-year increase of 35.9%; and net income was 6.886 billion yuan, a year-on-year increase of 51.1%.
Both in the first half of the year and in the second quarter, the company's revenue and net income set new historical records for the same period.
By business segment, the cloud computing business has become the core growth engine of the company.
In terms of the cloud computing businessIn the second quarter, the company's overall Server revenue grew by over 50%, with cloud service provider Server revenue increasing by more than 150% year-over-year, and AI Server revenue growing by over 60% year-over-year.
Among these, the GB200 series products have entered mass production, with yield rates continuously improving and shipment volumes increasing quarter by quarter.
In terms of communication and mobile network equipment,revenue from 800G high-speed Switches nearly tripled compared to the full year of 2024; the company's precision components Business saw a 17% increase in shipment volume in the first half of the year compared to the same period last year.
In the first half of the year, the company's R&D expenses amounted to 5.095 billion yuan, representing a 4.5% year-over-year increase.
Foxconn Industrial Internet stated that in the first half of the year, the global Technology Industry accelerated its restructuring amid the AI wave, driving robust growth in the company's core Business, with both order scale and value surging.
However, the Earnings Reports also revealed some concerns. The company's Operating Cash flow was 1.41 billion yuan, a year-over-year decline of 70.76%.
It is worth noting that the Board of Directors has resolved not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this reporting period.
This may reflect the management's cautious consideration of future funding needs.
The demand for computing power is surging.
Foxconn Industrial Internet stated in its semi-annual report that it will continue to focus on the AI development mainline.
By 2025, global major cloud service providers will continue to expand their capital expenditures on AI infrastructure, with ongoing high investment in AI computing power.
As cloud service providers continue to advance their AI computing power layouts, the AI Server market is showing a sustained growth trend.
According to TrendForce data, the demand for AI Servers will continue to grow in 2025, and the average selling price (ASP) contribution will be relatively high, with the output value expected to reach $298 billion, accounting for more than 70% of the total server output value.
Looking ahead, the company will continue to focus on the AI development mainline, continuously broaden the cooperation base with various types of customers, actively seize opportunities in emerging areas such as AI + Robotics, and continuously enhance product innovation capabilities, leading the technological evolution of industry AI infrastructure.
This year, global AI large model technology has accelerated its iteration, and the construction of AI computing power infrastructure is in full swing.
As a leading original design manufacturer in the Server industry, Foxconn Industrial Internet's performance indicates that changes are occurring within the domestic Industry Chain.
Everbright previously stated that Foxconn Industrial Internet holds a central position in the NVIDIA supply chain. The high growth of its AI Servers suggests an increase in orders for upstream components such as optical modules and PCBs. Attention should be given to the leading companies in the细分环节 of AI computing hardware, including PCBs, optical modules, Servers, copper cables, liquid cooling, and power equipment.
From an Industry perspective, AI is driving the realization of performance for related Industry Chain companies.
Guosheng Securities believes that as AI large models continue to iterate, their application will accelerate further, ultimately driving demand for AI computing power. Upstream AI computing chips will remain highly prosperous, and opportunities for Industry Chain development will continue to emerge.
