On August 22nd, Guolonghui pointed out in a research report from West Securities that Foxconn Industrial Internet (601138.SH) is a global leading high-end intelligent manufacturing and industrial internet service provider, with business achieving full coverage in the five major categories of cloud and edge computing, industrial internet, smart home, 5G and network communication equipment, smart phones and smart wearables, in the digital economy industry, with certain advantages in product, technology, and global market share. The company's cloud computing business mainly provides GPU modules, substrates, and AI server design and system integration to customers, and has achieved rapid profit growth in recent years. Based on the company's accumulation and technological advantages in the high-end manufacturing field, there is potential to further drive the development of its switch business in the background of rapid iteration of AI data center networks, creating new growth points. Taking into account the industry comparable company valuation, the company's historical valuation average level, the company's good customer base, and the continuous driving force of generative AI computing power demand, the company is given a 2024 PE of 21x, corresponding to a market cap of 558.695 billion yuan. First coverage, with a "buy" rating.