Yamato: The momentum of Foxconn's AI servers and smart electronic products is expected to continue.

Daiwa analysts stated in a research report that Foxconn's AI servers and smart electronic products business may continue to thrive. With the growth in inference demand and the increasing adoption of ASIC servers by large US cloud service providers, Foxconn Chairman Liu Yangwei believes that GPUs and ASICs will respectively occupy 80% and 20% of the market share. Daiwa believes that Google's TPU rack may start contributing to Foxconn's profits in the second half of the year, reaching NT $720 billion by 2027, accounting for 16% of Hon Hai's AI server total revenue. At the same time, as Foxconn's customers focus on high-average selling price models, the company should be less affected by rising memory prices. Daiwa maintains a buy rating on Foxconn, with a target price of NT $310.00.