Foxconn Industrial Internet Co Ltd

Stifel analyst Ruben Roy reiterated a Buy rating on Nvidia with a $282 price target ahead of the company's August 26 earnings report, citing strong AI server demand signals from Foxconn and Super Micro. Foxconn reported second-quarter revenue of NT$2.53 trillion, up 41% year-over-year, with its cloud and networking segment crossing 50% of revenue for the first time and full-year AI rack shipments guided to more than double. Super Micro reported $11.1 billion in fiscal fourth-quarter revenue, nearly double from a year earlier, and guided first-quarter net sales between $14.5 billion and $15.5 billion, well above analyst expectations of $11.9 billion, while booking over $60 billion of new orders in a single quarter. Stifel expects Nvidia to beat estimates and raise guidance, though it flags gross margin guidance as the key metric to watch due to potential pressure from GB300 and Vera Rubin ramp expenses. Hedge fund ownership of Nvidia rose to 275 funds at the end of the first quarter of 2026, up from 264 in the prior quarter, while short interest remains limited at about 1.26% of the public float.

Over the past month, companies on the Shanghai Stock Exchange main board have added a total of 91 new buyback and shareholding increase plans, with amount caps exceeding 26 billion yuan. According to statistics, from July 19 to August 18, the Shanghai main board saw 57 new buyback plans, with planned buyback caps of about 14.5 billion yuan, and 34 new shareholding increase plans, with planned increase caps of about 11.5 billion yuan. On the evening of August 19, Foxconn Industrial Internet disclosed its first buyback of 2.41 million shares, worth 149 million yuan. Huaxin Cement's shareholder Huaxin Group plans to increase its stake by 340 million to 680 million yuan. CCCC Design and Consulting's controlling shareholder subsidiary CCCC Capital plans to increase its stake by 80 million to 160 million yuan. In addition, companies such as Huayou Cobalt, Sany Heavy Industry, China Three Gorges Renewables, and China State Construction Engineering also disclosed buyback or shareholding increase plans in late July, and some have already entered a rapid implementation phase.

Li Yuanheng disclosed its 2026 semi-annual report. In the first half of the year, it achieved operating revenue of 1.96 billion yuan, up 28.18% year on year. Net profit attributable to the parent company was 38.95 million yuan, up 16.58% year on year. Non-GAAP net profit was 37.68 million yuan, up 33.11% year on year. Second-quarter revenue was 1.085 billion yuan, up 28.18% year on year and up 23.98% quarter on quarter. After excluding the impact of share-based payment expenses, first-half net profit reached 53.38 million yuan, up 57.26% year on year. As of the end of the reporting period, the company had orders on hand exceeding 5 billion yuan and had obtained supplier codes from global leading companies including NVIDIA, Meta, Apple, Tesla, and Foxconn.

Foxconn, or Hon Hai Precision Industry Co., said second-quarter profit increased 35% as artificial intelligence servers became a bigger market than the consumer electronics sector that includes iPhones. Net profit was T$59.97 billion, or nearly $1.86 billion, compared with the T$58.8 billion expectation of analysts. Cloud and networking goods comprising AI servers contributed 51% of quarterly revenue, exceeding 50% for the first time, while smart consumer electronics including Apple's iPhone accounted for only 29%. Foxconn expects demand for AI to stay robust throughout the year and is ready to supply Nvidia's next-generation Vera Rubin server racks in the fourth quarter. The company also intends to boost capital investment by over 30% this year as it expands manufacturing capacity.

Foxconn reported a forecast-busting second quarter net profit, driven by exploding demand for artificial intelligence servers. Net profit for April-June reached NT$59.97 billion, up 35 percent from a year earlier and beating analyst estimates of NT$58.38 billion. Revenue hit NT$2.53 trillion, a 41 percent increase. The company, officially Hon Hai Precision Industry, said AI infrastructure is driving growth and forecast strong year-on-year growth in the current quarter and a strong full-year outlook.

Shenzhen Securities Information, a wholly owned subsidiary of the Shenzhen Stock Exchange, will launch the ChiNext photovoltaic index on August 14. This is one of three theme indices recently rolled out on ChiNext, following the earlier releases of the ChiNext intelligent driving index and the ChiNext robotics index. The three new indices further expand the ChiNext series index matrix, precisely targeting three core new quality productive forces tracks: intelligent driving, industrial robots, and photovoltaics. Shanghai has issued the 15th Five-Year Plan for the software and information services industry, proposing that by 2030 the industry scale should strive to reach 4 trillion yuan, with value added exceeding 1.1 trillion yuan. The China Artificial Intelligence Industry Alliance has officially launched the call for contributions to the Embodied Intelligence Industry Map 2026. China's first ISO international standard in the field of fusion fueling has been officially released. According to Omdia research, global tablet shipments in the second quarter of 2026 fell 10 percent year on year to 36 million units. On the corporate front, Guangju Energy has revised upward its semi-annual earnings forecast, with net profit expected to increase by 603.02 percent to 635.24 percent year on year. Foxconn Industrial Internet saw its first-half net profit surpass 20 billion yuan for the first time, surging 96 percent year on year. Biwin Storage plans to buy back shares worth 200 million to 250 million yuan.

Foxconn Industrial Internet released its 2026 interim report on August 12, 2026. Total operating revenue was 557.861 billion yuan, net profit attributable to the parent company was 23.74 billion yuan, and net cash inflow from operating activities was 7.391 billion yuan. The company's latest asset-liability ratio is 65.66%, up 4.27 percentage points from the previous quarter and up 5.33 percentage points from the same period last year. The latest gross margin is 7.15%, down 0.20 percentage points from the previous quarter. The latest ROE is 13.51%. Diluted earnings per share is 1.20 yuan, total asset turnover is 1.15 times, and inventory turnover is 3.02 times, down 6.69% from the same period last year. The number of shareholders is 821,500, and the top ten shareholders hold 16.941 billion shares, accounting for 85.37% of the total share capital.

Jangho Group disclosed its first-half 2026 results, achieving operating revenue of 10.824 billion yuan, up 15.90% year-on-year, and net profit attributable to shareholders of the listed company of 441 million yuan, up 34.34% year-on-year. Jianxin Chemical reported net profit of 47.8701 million yuan for the same period, surging 790.27% year-on-year, with operating revenue of 360 million yuan, up 51.42% year-on-year. Foxconn Industrial Internet posted first-half net profit of 23.74 billion yuan, up 95.99% year-on-year, and operating revenue of 557.861 billion yuan, up 54.63% year-on-year. Yongjie New Materials shareholders Qianhai Equity Fund, Zhongyuan Qianhai Fund, and Qilu Qianhai Fund plan to collectively reduce their holdings by no more than 5.9441 million shares, representing 3% of total share capital. Biwin Storage intends to use 200 million to 250 million yuan of its own or self-raised funds to repurchase shares for capital reduction, with a repurchase price not exceeding 468.24 yuan per share. Longsys has obtained a commitment letter from China Construction Bank Shenzhen Branch for a special share repurchase loan of up to 720 million yuan, following the company's earlier plan to repurchase shares worth 400 million to 800 million yuan for equity incentives. Chunxing Precision was sued over a subsidiary's loan contract dispute, involving principal of 166 million yuan plus interest, with the company bearing joint guarantee liability. Anhui Construction Engineering Group Vice General Manager He Hongchun has been detained and resigned from his position; the company stated that this does not affect daily operations. Sinomach Automobile's investee company Xinbang Kechuang has been accepted by the court for bankruptcy liquidation filing, and the company has already adjusted the carrying amount of its long-term equity investment in Xinbang Kechuang to zero. Golden Laser's actual controller Liang Wei was sentenced to three years and nine months in prison in the final trial for market manipulation, fined 12 million yuan, and ordered to disgorge illegal gains; during the manipulation period, he cashed out approximately 115 million yuan through share reductions.

Guangju Energy disclosed a revised first-half earnings forecast, significantly raising its expected net profit attributable to shareholders of the listed company for the first half of 2026 from the previous range of 25.1692 million yuan to 28.1738 million yuan to a new range of 65.5596 million yuan to 68.5642 million yuan. The year-on-year growth forecast has been revised from 169.90%–202.12% to 603.02%–635.24%. The main reason for the upward revision is that the company holds a 14.42% stake in associate company Mawan Power, and at the end of the second quarter it confirmed the 2025 dividend, which increased investment income for the reporting period by 40.3904 million yuan and correspondingly increased net profit by 40.3904 million yuan. This matter arose from an earlier dividend resolution by the associate company and does not constitute non-recurring profit or loss. In other news, Yuanjie Technology plans to invest 4.268 billion yuan to build the Yuanjie Semiconductor Technology Industrial Park project. Liang Wei, the actual controller of Golden Laser, was sentenced in a final trial to three years and nine months in prison and fined 12 million yuan for market manipulation. Several companies disclosed their half-year reports: Foxconn Industrial Internet achieved a net profit of 23.74 billion yuan, up 95.99% year-on-year; Unionman Technology turned losses into profits year-on-year; and Jianxin Chemical's net profit grew 790.27% year-on-year.

On the evening of August 11, several listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Foxconn Industrial Internet achieved a net profit attributable to shareholders of 23.74 billion yuan in the first half of 2026, a year-on-year surge of 96%, breaking through the 20 billion yuan mark for the first time. Revenue reached 557.86 billion yuan, up 54.6% year-on-year, both setting new historical highs. Within this, revenue from the cloud computing segment grew 75.7% year-on-year, and shipments of AI servers and networking products multiplied. Yuanjie Technology plans to invest approximately 4.268 billion yuan to build a production line for laser chips and other industrialization bases. Qiangrui Technology plans to raise no more than 1.05 billion yuan through a private placement for projects including precision liquid cooling components for AI servers and precision parts for high-end semiconductor equipment. Yaben Chemical plans to raise no more than 841 million yuan through a private placement for projects such as high-end pharmaceutical intermediates and active pharmaceutical ingredients. Nation Technologies announced that starting October 1, 2026, it will raise prices on some products by 10% to 20%. Longsys has obtained a commitment letter from China Construction Bank for a special stock buyback loan of no more than 720 million yuan. Huayang Group's Huizhou Dongxing factory expansion project for optical modules and liquid cooling heat dissipation components is about to go into production. Pengling Co. has made phased progress in the liquid cooling field, and its energy storage liquid cooling business has already achieved deliveries. Titanium Energy Chemical plans to have its wholly-owned subsidiary invest 5.462 billion yuan to build a project with an annual output of 600,000 tons of lithium iron phosphate and sodium iron phosphate precursors. Biwin Storage plans to repurchase shares worth 200 million to 250 million yuan for capital reduction, with a repurchase price not exceeding 468.24 yuan per share.

Unitree Technology disclosed the online lottery results for its initial public offering, with a total of 19,414 winning numbers, each entitling the holder to subscribe for 500 A-shares. Yuanjie Technology plans to invest approximately 4.268 billion yuan in building a semiconductor technology industrial park to expand production capacity for high-end laser chips. Pengding Holdings released its semi-annual report, with second-quarter net profit up 77 percent quarter-on-quarter, and both AI server and optical module businesses achieving substantial growth. Foxconn Industrial Internet reported first-half net profit of 23.74 billion yuan, up 95.99 percent year-on-year, with AI server product shipments rising significantly. Runbang Corporation's subsidiary signed a sales contract for six live fish transport vessels, with a total value of approximately 2.8 billion to 3.3 billion yuan.

Vertiv reported a 24% year-over-year increase in net sales for the second quarter of 2026, driven by strong demand for its power, thermal, and infrastructure solutions from AI data centers. The Americas and APAC regions each grew 29%, while EMEA returned to positive growth. The company has expanded manufacturing capacity in Malaysia, the Americas, and EMEA to support complex data center infrastructure at scale. Vertiv also highlighted collaborations with NVIDIA and Foxconn's VisionBay AI on projects including Taiwan's first AI data center featuring NVIDIA GB300 and the world's first AI data center adopting 800V DC architectures. For the third quarter of 2026, Vertiv expects net sales between $3.65 billion and $3.85 billion.

Foxconn Industrial Internet has disclosed its 2026 half-year report. Net profit attributable to the parent company reached 23.74 billion yuan in the first half, up 95.99% year-on-year, marking four consecutive quarters with net profit exceeding 10 billion yuan. Operating revenue came in at 557.861 billion yuan, a 54.63% increase, driven mainly by explosive growth in AI computing demand. Revenue from the cloud computing segment rose 75.7% year-on-year, with AI server revenue surging 2.3 times. The company revealed it has secured an early position on Nvidia's next-generation Vera Rubin computing platform, with delivery capabilities and depth of supply chain integration ranking in the industry's top tier.

Nvidia's stock has recovered from a post-earnings dip, buoyed by strong demand signals from key partners. Foxconn, a major Nvidia partner, reported record fourth-quarter sales driven by its networking and cloud division, which handles much of its Nvidia-related business, and guided for similar year-over-year growth next quarter. Microsoft announced plans to spend $80 billion on AI data center infrastructure in its fiscal 2025, a roughly 60% increase year over year, reinforcing that the AI arms race is far from over. Nvidia CEO Jensen Huang's CES 2025 keynote highlighted new products and the rise of Agentic AI, underscoring the company's continued leadership. While Nvidia's massive size makes extreme growth unlikely, these developments suggest it can still outperform the market.

On the afternoon of August 5, Foxconn Industrial Internet hit the daily limit up in under two minutes, with buy orders at the limit exceeding 300,000 lots at one point. As of the close, the stock price stood at 65.92 yuan per share, turnover surpassed 18.5 billion yuan, and the latest total market capitalization reached 1.31 trillion yuan. The company recently disclosed that sample units of its CPO all-optical switch have started production and begun shipping, and the next-generation AI server platform is progressing as planned without delays. The company expects net profit attributable to parent company shareholders for the first half of 2026 to be between 23.4 billion and 24.4 billion yuan, a year-on-year increase of 93 to 101 percent, while revenue from cloud service provider AI servers rose over 230 percent year-on-year in the same period. In addition, the company plans to repurchase shares using no less than 1 billion yuan and no more than 2 billion yuan of its own funds, at a repurchase price not exceeding 103 yuan per share, with the repurchase period set within three months from the date of board approval.

On August 5, the consumer electronics sector rose 3.18% intraday, with Zhidongli up 20.00%, Boshuo Technology up 15.52%, Universal Scientific Industrial up 10.00%, Litong Electronics up 10.00%, and Bird shares up 9.92%. According to Shanghai Securities News, as August begins, the consumer electronics market enters a new product launch season, driven primarily by Apple's next-generation products. The entire Apple supply chain is accelerating recruitment, with leading contract manufacturers like Foxconn continuously expanding engineering positions. Companies such as Lens Technology and Jingyan Technology have already entered critical stages of research and development, capacity expansion, and mass production delivery. A research report from Wanlian Securities noted that in the first quarter of 2026, the consumer electronics sector's revenue grew 33.65% year-on-year, and net profit attributable to the parent company rose 44.40% year-on-year. However, performance within the sector diverged significantly, with companies closely tied to AI computing power performing better, while those with a larger share of consumer electronics main business still face cost pressures. Looking ahead, as major companies launch new products and AI-enabled terminals continue to gain traction, replacement demand is expected to be stimulated. A research report from Guojin Securities pointed out that the 3C accessories industry continues to tap growth potential through new material applications and functional innovations. Relevant new regulations are expected to be implemented in 2026, which will accelerate the exit of small and medium-sized players and promote industry consolidation.

Based on the equity registration date, a total of six listed companies will implement their dividend plans today. Among them, four companies are distributing at least 1 yuan in cash per 10 shares. Foxconn Industrial Internet offers the most generous payout at 6.50 yuan per 10 shares, followed by Spring Airlines and ST Humanwell with 5.30 yuan and 4.80 yuan per 10 shares respectively. Looking at share price performance over the past five trading days, Guomai Culture rose 5.05 percent, the biggest gainer, while Visual China Group and ST Humanwell climbed 2.95 percent and 2.63 percent respectively. In contrast, Foxconn Industrial Internet fell 14.44 percent over the same period. Statistics show that a total of 3,651 A-share companies have proposed distribution plans for 2025, of which 3,640 include cash dividends, with total cash payouts reaching 1.59 trillion yuan.

Chinese listed companies announced share buyback plans totalling 67.6 billion yuan, or roughly 9.99 billion US dollars, in July, a level close to that seen during the 2025 trade war crisis, aimed at supporting share prices and restoring investor confidence battered by global sell-offs. Contemporary Amperex Technology, or CATL, the world's largest electric vehicle battery maker, proposed a buyback of up to 40 billion yuan, while Foxconn Industrial Internet announced a plan of up to 2 billion yuan. The accelerated buybacks come amid a sell-off in artificial intelligence stocks and concerns over the Chinese economy, with the CSI 300 Index falling more than 7 percent in July and the STAR 50 Index tumbling around 24 percent, its steepest decline since the index was launched in 2020. Analysts view the measures as providing short-term support to the market, but a sustainable recovery still hinges on earnings growth and the Chinese government's economic policies in the second half of the year.

From July 27 to 28, Shanghai-listed companies continued to release a dense stream of positive signals across multiple dimensions, including buybacks, shareholding increases, extended lock-up periods for shareholders, earnings previews, and interim dividends. Statistics show that over the two days, a total of seven Shanghai-listed companies unveiled new buyback plans, with the combined upper limit of buyback amounts reaching 2.39 billion yuan. Three companies announced new shareholding increase plans, with the combined upper limit of increase amounts totaling 370 million yuan. Among them, Foxconn Industrial Internet plans to use 1 billion to 2 billion yuan of its own funds to buy back shares. Yuchen Intelligence, Ningbo Yunsheng, and Huaxiang Group added new buyback plans for equity incentives or employee stock ownership. Zhongli Shares and Yongzhen Shares set the lower limits of their buyback amounts at 50 million yuan and 40 million yuan, respectively. Chongqing Port disclosed a buyback plan of 20 million to 30 million yuan. Four shareholders, including the controlling shareholder of Jindi Shares, voluntarily extended the lock-up period for pre-IPO restricted shares by 12 months to August 31, 2027, with their combined holdings exceeding 115 million shares. On the earnings front, CITIC Securities issued an announcement regarding China Asset Management's 2026 semi-annual earnings preview, showing that China Asset Management achieved operating revenue of 5.708 billion yuan and net profit of 1.413 billion yuan in the first half of the year, with assets under management reaching 2.91 trillion yuan. Universal Scientific Industrial reported first-half operating revenue of 27.336 billion yuan and net profit attributable to the parent company of 822 million yuan, a year-on-year increase of 28.85 percent. In terms of dividends, the chairman of Huadian Power International proposed a cash dividend of 0.9 yuan per 10 shares. The chairman of Ningbo Port proposed an interim dividend of no less than 30 percent of distributable profit for the first half. The chairman of Haohua Energy proposed an interim dividend of no less than 20 percent of net profit attributable to the parent company for the first half. On the STAR Market, 14 positive announcements were released in a single day on July 28, including Yandong Microelectronics' shareholding increase plan with an upper limit of 300 million yuan. Kingsoft Office, Sanwei Information Security, and Hyperstrong submitted strong earnings forecasts or previews. Dameng Data announced a shareholder shareholding increase plan. Zhengyuan Geomatics announced that its controlling shareholder extended the lock-up period. Sunway Biotech announced receipt of a drug clinical trial approval notice. Additionally, Orinko Advanced Plastics, Feymer Technology, Chipmore Technology, Canadian Solar, Geling Shentong, Shanghai Yizhong Pharmaceutical, and Actionpower disclosed updates on their buyback progress.

Foxconn Industrial Internet has released a buyback report, planning to repurchase shares through centralized competitive bidding. The buyback amount will be no less than 1 billion yuan and no more than 2 billion yuan, funded by its own capital. The buyback price will not exceed 103 yuan per share, with an estimated buyback volume of approximately 9.71 million to 19.42 million shares, accounting for 0.05% to 0.10% of total share capital. The repurchased shares will be used to safeguard company value and shareholder equity and will be sold in accordance with regulations. Any unsold shares after the deadline will be cancelled according to law. The buyback period is within three months from the date of board approval. Robotechnik's wholly-owned subsidiary ficonTEC has signed a contract worth approximately 16.74 million euros with a subsidiary of a New York Stock Exchange-listed company H. The contract covers automated manufacturing equipment and services for the mass production of optical components such as fiber arrays, equivalent to 129 million yuan, representing 13.59% of the company's audited 2025 revenue. Orient Securities plans to acquire 100% equity of Shanghai Securities through the issuance of A-shares and cash payment. The transaction consideration is 25.12 billion yuan, comprising 23.55 billion yuan in shares and 1.57 billion yuan in cash. The share issuance price is 10.29 yuan per share, with a total issuance of approximately 2.289 billion shares. Due to special circumstances, Lihang Technology will be restricted from obtaining orders from a specific customer for six months starting July 2026. This is expected to reduce 2026 revenue by approximately 50 million yuan. In 2025, revenue from this customer accounted for 70.54% of the company's audited operating revenue. Changxin Boci's controlled subsidiary Changxin Sheng Wuhan has signed a long-term cooperation agreement with an existing customer. The estimated sales amount during the agreement's effective period is approximately 4.5 billion yuan, representing about 178% of the company's audited 2025 operating revenue. The agreement runs until December 31, 2030. CSPC Innovation Pharmaceutical expects its half-year 2026 net profit attributable to shareholders of the listed company to be between 1.18 billion and 1.36 billion yuan, turning from a loss to a profit year-on-year. This is mainly due to its controlled subsidiary Jushi Biotech receiving a 420 million US dollar upfront payment from its collaboration with AstraZeneca and partially recognizing the revenue. Dongfang Precision has released its 2026 half-year report, achieving operating revenue of 1.691 billion yuan, down 21.68% year-on-year. Net profit attributable to shareholders of the listed company was 3.846 billion yuan, up 867.75% year-on-year. It plans to distribute a cash dividend of 2 yuan for every 10 shares. Shenhuo Coal and Power's 2026 half-year operating revenue reached 24.791 billion yuan, up 21.35% year-on-year. Net profit attributable to shareholders of the listed company was 4.781 billion yuan, up 151.06% year-on-year.

Foxconn Industrial Internet announced plans to use its own funds to buy back 1 to 2 billion yuan of shares through centralized competitive trading. The buyback price will not exceed 103 yuan per share, and the buyback period is within three months from the date of board approval. The repurchased shares will be used for sale, and any unsold shares after the deadline will be cancelled. The company's directors, senior management, and controlling shareholders have no plans to reduce their holdings. As of the close on July 27, Foxconn Industrial Internet's share price was 61.55 yuan, with a total market value of 1.22 trillion yuan. The buyback price ceiling represents a premium of about 67.34 percent over the closing price. The company stated that its share price has fallen by a cumulative 20 percent over the past twenty consecutive trading days, and the buyback aims to safeguard company value and shareholder interests. Meanwhile, the company expects net profit attributable to shareholders for the first half of 2026 to be between 23.4 billion and 24.4 billion yuan, a year-on-year increase of 93 to 101 percent, with AI server revenue up over 230 percent year-on-year. In addition, the company's cumulative cash dividends for 2025 will reach 19.45 billion yuan, a record high since its listing.

On the evening of July 27, multiple listed companies on the Shanghai and Shenzhen exchanges released announcements. Orient Securities plans to acquire 100% equity of Shanghai Securities for 25.12 billion yuan, with share consideration of 23.55 billion yuan and cash consideration of 1.57 billion yuan. Guotai Junan Securities has been approved to publicly issue corporate bonds to professional investors totaling no more than 80 billion yuan. China Energy Engineering Corporation signed new contracts worth 513.188 billion yuan in the first half of the year, down 33.81% year-on-year; PowerChina signed new contracts worth 619.893 billion yuan in the first half, down 9.73% year-on-year. Shenhuo Coal Industry and Power reported first-half net profit of 4.781 billion yuan, up 151.06% year-on-year; Dongfang Precision reported first-half net profit of 3.846 billion yuan, up 867.75% year-on-year, and plans to distribute a cash dividend of 2 yuan per 10 shares. Foxconn Industrial Internet plans to repurchase shares worth 1 billion to 2 billion yuan, and iFlytek plans to repurchase shares worth 100 million to 200 million yuan. A controlled subsidiary of Changxin Bochuang signed a long-term cooperation agreement for the sale of optical fiber and cable worth approximately 4.5 billion yuan. In addition, ST Hengxin has been placed under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws, and a controlled subsidiary of Beingmate has suspended production due to typhoon and rainstorm, with some assets suffering losses.

HSBC doubled its price target on Intel to $200 from $100 while retaining a Buy rating, calling the foundry business too good to ignore. The firm now includes the foundry unit in its sum-of-the-parts valuation and expects foundry engagements to begin materializing in the second half of 2026. Server CPU growth remains the primary earnings driver for 2026 and 2027. Separately, Reuters reported on June 4 that Intel and Foxconn agreed to jointly develop next-generation AI infrastructure, combining Intel's chip technology with Foxconn's manufacturing and system integration capabilities.

Mid-year earnings previews from AI supply chain companies continue to roll out. A-share memory leader GigaDevice expects first-half net profit attributable to the parent of approximately 6.9 billion yuan, a year-on-year increase of about 1,099 percent, exceeding full-year forecasts from multiple brokerages. The company said the memory chip industry is experiencing tight supply, with both volume and prices rising, while microcontroller shipments also achieved solid growth. Additionally, fair value gains from securities investments increased significantly. Foxconn Industrial Internet expects first-half net profit attributable to the parent of 23.4 billion to 24.4 billion yuan, up 93 to 101 percent year-on-year, marking the first time half-year net profit has exceeded 20 billion yuan. AI server revenue surged over 230 percent year-on-year. Meanwhile, niche leaders such as Han's CNC, Dinglong, and Allwinner Technology also issued positive previews. However, Feilong Auto's liquid cooling business still accounts for a low share of revenue, and Suzhou Keda's new AI business remains in the investment phase, weighing on performance.

GigaDevice has released its half-year performance forecast, estimating net profit attributable to shareholders of the listed company for the first half of 2026 at approximately 6.9 billion yuan, a year-on-year increase of about 1,099 percent, mainly driven by tight supply in the memory chip industry, with both volume and price of the company's memory chip products rising, and microcontroller product shipments also achieving good growth. Foxconn Industrial Internet expects first-half net profit of 23.4 billion to 24.4 billion yuan, up 93 to 101 percent year-on-year, with shipments of data center switches of 800G and above growing 1.4 times year-on-year. Western Mining expects first-half net profit of 4 billion to 4.3 billion yuan, up 114 to 130 percent year-on-year, as prices of copper, gold, and silver products rose compared with the same period last year. Sunwave Communications expects first-half net profit of 40 million to 55 million yuan, up 1,428.58 to 2,001.80 percent year-on-year, with internet business revenue achieving growth. Han's Laser expects first-half net profit of 1.25 billion to 1.35 billion yuan, up 156.07 to 176.55 percent year-on-year, with the revenue share of AI PCB solutions increasing. Tinci Materials expects first-half net profit of 2.7 billion to 3 billion yuan, up 907.84 to 1,019.82 percent year-on-year, with strong market demand for lithium-ion battery materials such as electrolyte and lithium hexafluorophosphate. Capchem expects first-half net profit of 970 million to 1.03 billion yuan, up 100.48 to 112.88 percent year-on-year, with the market share of core products in the electronic information chemicals business steadily increasing. Meichang New Materials expects first-half net profit of 295 million to 315 million yuan, up 248.45 to 272.08 percent year-on-year, with the shipment share of tungsten wire diamond wire increasing. Tianhua New Energy expects first-half net profit of 2.2 billion to 2.4 billion yuan, turning from a loss to a profit year-on-year, with both volume and price of lithium battery materials rising. Shenhuo Coal & Power expects first-half net profit of 4.8 billion yuan, up 152.04 percent year-on-year, with selling prices of electrolytic aluminum and coal products rising year-on-year. Feilong Auto Components expects first-half net profit of 68 million to 80 million yuan, down 61.98 to 67.69 percent year-on-year, affected by exchange rate fluctuations, intensified industry competition, and rising raw material prices. Dalian Insulator expects first-half net profit of 140 million to 180 million yuan, up 200.55 to 286.43 percent year-on-year, having completed product supply for key ultra-high voltage projects. Baotou Steel and Northern Rare Earth both adjusted the rare earth concentrate transaction price for the third quarter to 38,565 yuan per ton excluding tax, down 0.62 percent quarter-on-quarter. Caitong Securities expects first-half net profit of 1.84 billion to 1.95 billion yuan, up 70 to 80 percent year-on-year, with significant year-on-year growth in proprietary investment, wealth management, private equity investment, and investment banking businesses. Dinglong shares expects first-half net profit of 510 million to 540 million yuan, up 63.96 to 73.61 percent year-on-year, with major breakthroughs in the CMP polishing fluid and cleaning fluid business. Han's CNC expects first-half net profit of 900 million to 1 billion yuan, up 241.85 to 279.84 percent year-on-year, with the revenue share of AI PCB-related solutions significantly increasing. Zijin Mining expects first-half net profit of approximately 39.1 billion yuan, up about 68 percent year-on-year, with profits from rare and precious metals and other products increasing substantially year-on-year. Allwinner Technology expects first-half net profit of 475 million to 515 million yuan, up 194.73 to 219.55 percent year-on-year, with operating revenue increasing about 40 percent year-on-year. Enjie shares expects first-half net profit of 736 million to 900 million yuan, turning from a loss to a profit year-on-year, with production and sales of main products continuing to grow. Hongfuhan expects first-half net profit of 73 million to 83 million yuan, up 221.13 to 265.13 percent year-on-year, with the scale of heat dissipation and automation equipment business growing. Qianyuan Power expects first-half net profit of 220 million to 255 million yuan, up 73.01 to 100.54 percent year-on-year, with power generation increasing 26.10 percent year-on-year. Zhengbang Technology expects a first-half net loss of 700 million to 800 million yuan, turning from a profit to a loss year-on-year, with the average selling price of commercial pigs declining year-on-year. COSCO Shipping Specialized Carriers expects first-half net profit of 1.279 billion to 1.402 billion yuan, up 55 to 70 percent year-on-year, with demand for specialized vessels surging. Wynca expects first-half net profit of 240 million to 260 million yuan, up 247 to 276 percent year-on-year, with market selling prices of leading products rising. In addition, Azure intends to invest 290 million US dollars in Indonesia to build a 5 gigawatt-hour cylindrical lithium battery project, Tiansheng shares plans to establish a joint venture with Beijing Kangte Electronics to invest in a quartz crystal resonator project, Xinrui shares plans to acquire 80 percent equity of Huilian Electronics for 800 million yuan, Neusoft Corporation plans to repurchase shares for cancellation with 100 million to 200 million yuan, Datang Power plans to raise no more than 8 billion yuan for multiple power plant expansion projects, and Hangyu Technology has signed a long-term supply agreement for aero-engine rotating parts with an estimated total value of about 240 million yuan.

U.S. equity futures moved modestly higher on Monday as investors returned from the Independence Day holiday, with Dow futures broadly unchanged, S&P 500 futures gaining 0.3%, and Nasdaq 100 futures rising 0.9%. Markets are focused on the Institute for Supply Management's June services PMI, expected to ease slightly to 54.2 from 54.5 in May, with any reading above 50 signaling continued expansion in the sector that accounts for more than two-thirds of U.S. economic activity. Oil prices edged lower after OPEC+ agreed to raise crude production targets by a further 188,000 barrels per day from August, with Brent crude slipping around 0.4% to $71.86 a barrel and U.S. West Texas Intermediate falling approximately 0.2% to $68.63. Spot gold declined as the U.S. dollar strengthened, reducing demand for the precious metal, after gold had benefited from weaker U.S. payroll figures that scaled back expectations of additional Federal Reserve rate increases. Foxconn reported a 39.8% year-on-year increase in second-quarter revenue to T$2.513 trillion, exceeding market expectations, driven by strong demand for artificial intelligence infrastructure.

Foxconn reported record second-quarter revenue of NT$2.513 trillion, up 39.83% year-over-year, driven by strong AI demand. The figure exceeded the LSEG SmartEstimate of NT$2.372 trillion. June revenue surged 52.11% year-over-year to NT$821.8 billion, also a record for the month. The company forecast both quarter-over-quarter and year-over-year growth for the third quarter but cautioned that the volatile global political and economic situation needs monitoring.

Shares of Churchill Capital Corp XI are trading higher following last week's announcement of a definitive business combination agreement with Agility Robotics, valuing the humanoid robotics company at a pre-money equity value of $2.5 billion. The merger is expected to provide Agility with over $620 million in gross proceeds, including $420 million of cash held in Churchill XI's trust account and a $200 million common stock PIPE priced at $10 per share, led by Foxconn alongside existing and new institutional investors. Agility Robotics produces Digit, a commercially deployed humanoid robot for manufacturing and logistics, and has secured over $300 million in multi-year contracted orders for its upcoming Digit v5. All existing Agility shareholders are rolling their equity into the combined company and will be subject to a 180-day lock-up, with the combined entity listing under the ticker AGLT upon closing.

A 22V Research report finds the United States relies on Chinese companies for almost 30% of its imports of AI-related products, with China playing a central role in data center supply chain components such as energy storage, transformers, critical minerals, and chemicals. The report notes that AI-related exports have accounted for about half the growth in China's overall exports this year, and many of the companies are listed in Shenzhen. Among the 10 biggest AI supply chain companies by market cap in the CSI 300 index, nine had at least doubled in the 12 months through May, including printed circuit board makers Victory Giant, Dongshan Precision, and Shengyi Technology, as well as multilayer ceramic capacitor manufacturer Sanhuan Group. On the server side, Foxconn Industrial Internet and Sungrow Power were also on the list, while optical and networking names InnoLight, Eoptolink, and TFC were highlighted by JPMorgan analysts for their role in high-speed data center links. Recent share price gains have pushed InnoLight and Foxconn Industrial Internet into the 1 trillion yuan market cap range.

Agility Robotics will go public through a merger with Churchill Capital Corp XI in a deal that values the startup at about $2.5 billion, the Wall Street Journal reported. The companies expect gross proceeds of more than $600 million, including $420 million in cash from Churchill XI and over $200 million from a common-stock private investment in public equity led by Taiwan-based Foxconn. The combined company will list under the ticker symbol AGLT. Agility Robotics, based in Oregon, makes commercially deployable humanoid robots called Digit and has already secured orders for a new version with finer dexterity and higher safety standards.

Nvidia is expanding its AI infrastructure reach beyond hyperscalers through a new deployment with Vultr Holdings and the start of European manufacturing for its Vera Rubin NVL72 systems. Vultr is rolling out NVIDIA GB300 NVL72 systems and Spectrum-X Ethernet to build large enterprise-scale AI data centers. Meanwhile, Nvidia is beginning European production of Vera Rubin NVL72 systems through partners Bull and Foxconn, supporting a regional, made-in-Europe supply chain for data centers and AI factories. The moves highlight how Nvidia is positioning itself across both cloud providers and region-specific supply chains rather than relying only on a narrow group of hyperscale customers.

Nvidia has begun European manufacturing of its Vera Rubin NVL72 AI platform in partnership with Bull and Foxconn. The companies will design, build, and validate AI servers and data center systems within Europe, aiming to localize advanced AI infrastructure production and strengthen the region's AI supply chain. Foxconn will produce and test systems in the Czech Republic, while Bull will complete assembly and validation in France. The move ties Nvidia's rack-scale AI platform to a 'made in Europe' supply chain, which can appeal to customers concerned with data residency, export rules, and local content. This regional manufacturing effort supports Nvidia's strategy of supplying full-stack AI infrastructure for data centers, not just GPUs, and could broaden its customer base beyond US hyperscalers into sovereign and regional AI projects.

Intel shares rose about 4.5% in premarket trading Wednesday after the company announced its next-generation 18A-P manufacturing process has reached the risk production stage, a critical step before full-scale manufacturing begins. The move signals Intel is sticking to its manufacturing roadmap, which the company hopes will reassure outside customers considering its foundry services. Intel said 18A-P offers a 9% performance boost over the original 18A node at the same power level, or an 18% reduction in power consumption at equivalent processing speeds, along with improvements to thermal management and design flexibility. The announcement comes amid a surge in demand for Intel's processors from companies building AI infrastructure, with demand strong enough in the first quarter that Intel sold chips it had previously written off. Earlier this month, Intel struck a partnership with Foxconn to develop server racks combining Intel's CPUs with its AI accelerator architecture, targeting applications in robotics, autonomous vehicles, smart cities, and manufacturing.