Foxconn Soars 22% Past Estimates as AI Server Demand Ignites Revenue
Forget the iPhone—the real gold rush is in the server racks. Foxconn, the manufacturing titan behind countless gadgets, just posted a revenue surge that left analysts scrambling to update their models.
The AI Hardware Engine
That 22% jump? It wasn't driven by the next shiny smartphone. The numbers point squarely to a voracious, unrelenting demand for the physical backbone of artificial intelligence. Every large language model query, every automated trading algorithm, and every cloud-based AI service needs a home. That home is increasingly built in Foxconn's factories.
Supply Chains Get a Brain
The narrative has flipped. We're moving from a world of 'just-in-time' logistics for consumer parts to a 'just-in-case' arms race for computational power. Companies aren't just ordering servers; they're stockpiling processing capability, betting their future on outsized AI infrastructure. Foxconn's results are a direct feed from the front line of that war.
While Wall Street analysts pat themselves on the back for predicting a 15% rise, the actual 22% figure quietly mocks their conservative spreadsheets—proving once again that in a tech revolution, the old financial playbooks are the first to become obsolete.
Big Tech pours billions into AI as investors debate bubble risk
Micron, Nvidia’s memory partner, has echoed confidence about long-term AI demand. In November, Nvidia said it expected $65 billion in revenue for the January quarter, $3 billion higher than the market forecast. The company added that its $500 billion pipeline might end up even larger.
But not everyone’s convinced the spending spree will pay off. Microsoft, Alphabet, Amazon, and Meta are projected to increase capital spending by 34%, with a combined total NEAR $440 billion next year. At the same time, OpenAI plans to spend more than $1 trillion on AI infrastructure, even though it’s not profitable.
The problem some investors see is that money keeps circulating between the same players. Deals are structured in ways where funds go between OpenAI and its tech backers, the same companies already driving infrastructure growth.
As the AI trade drags equity indexes higher, others are watching for cracks. The S&P 500 gained 16% in 2025, led by Nvidia, Alphabet, Broadcom, and Microsoft. Those names now make up nearly 30% of the entire index. If AI sentiment drops, the index could take a hit.
iPhone 17 lifts Foxconn further as rally outpaces past bubbles
Outside of AI, Foxconn still earns heavily from Apple. It assembles the iPhone 17, which launched in September and pulled off double-digit sales growth in both the United States and China, according to Counterpoint. The momentum may push Apple past Samsung in total global shipments this year.
But underneath the numbers, some worry this is starting to look like the bubbles of the past. According to data compiled by Bloomberg, the AI stock rally, tracked by the Nasdaq 100, has already lasted 3 years with gains of 131%.
That’s longer than the dotcom bubble, which ended in 1.46 years. The only rallies that saw more explosive returns in a short window were the China A-share bubble with 513% in 2.36 years, and the tech disruptors rally post-Covid, which surged 384% in under a year.
Still, not everyone thinks this will pop. “A bubble likely crashes on a bear market,” said Gene Goldman, chief investment officer at Cetera Financial Group. “We just don’t see a bear market anytime soon.”
Brian Levitt, chief global market strategist at Invesco, said that even if spending outpaces short-term needs, it doesn’t mean the tech won’t get built. He compared it to other overbuilt revolutions; railroads, power grids, and the internet.
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