The Zhitong Finance App learned that Hongteng Precision (06088) is now up more than 5%. As of press release, it has risen 5.26% to HK$2.21, with a turnover of HK$22.205 million.

CICC pointed out that the rapid iteration of AI models is continuing to drive the expansion of demand for underlying computing power infrastructure. Zheng Hongmeng, chairman of Fidelity Industries, a subsidiary of Hon Hai, said recently that he has seen the visibility of new orders for generative AI servers. It is estimated that AI applications will account for 40% of the revenue of cloud computing projects this year, and AI servers will account for 40% of the global market.

Damo previously pointed out that the potential related to Hon Hai's AI server is not fully understood by the market. Hon Hai recently won an AI server project with its original CMMS model. The project is expected to contribute 12% of profit in 2025, and the total profit will increase 20% year over year. Furthermore, the iPhone assembly business continued better than expected, and it is expected that Hon Hai's iPhone assembly share will remain around 60% today and tomorrow.