Taiwan’s Hon Hai Precision Industry (HNHPF), better known as Foxconn, has approved up to $1.37 billion to build a new AI compute cluster and supercomputing center. The plan runs from December 2025 to December 2026 and will be fully funded by the company. The move marks Foxconn’s effort to grow beyond smartphone assembly and become a leader in AI hardware.
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In recent quarters, that change has started to show in the numbers. In the second quarter of 2025, Foxconn’s AI server and cloud networking revenue made up 41% of its total $58.7 billion in sales. It was the first time that the business passed its consumer electronics segment. AI server sales grew by more than 60% year-over-year in the quarter, and the company expects growth above 170% in the third quarter.
Meanwhile, HNHPF shares rose 1.57%, closing at $16.21.
Deepening Work With Nvidia
Foxconn’s shift into AI has been powered by its close partnership with Nvidia (NVDA). In May, the two companies said they would build Taiwan’s most powerful AI factory. The project will include 10,000 Nvidia Blackwell GPUs and run on 100 megawatts of power. It will also support Foxconn’s work in smart manufacturing, electric vehicles, and smart cities.
Since then, the partnership has grown. Foxconn’s chairman, Young Liu, met with OpenAI’s (PC:OPAIQ) Sam Altman in October and said more talks with Nvidia leaders were planned. The news helped send Foxconn’s stock up nearly 8%. The company is also adding Nvidia’s new 800 VDC data center power system to its K-1 AI data center in Kaohsiung, Taiwan.
Taiwan’s Expanding Role in AI
The new investment adds to a year of record spending on AI infrastructure worldwide, which topped $1 trillion in 2025. Foxconn now holds more than 40% of the global AI server market, and AI servers make up over half of its total server sales. For the quarter ending in September, Foxconn’s revenue rose 11% from a year earlier to a record $67.6 billion. Capital spending in the first half of 2025 reached $79.8 billion, up 25% year-over-year.
Taiwan’s government has also pushed to strengthen its place in global AI development through programs led by the National Science and Technology Council. With that support, Foxconn is positioning itself as a key player in the next wave of computing, building the hardware that powers the world’s growing AI networks.
Is Foxconn a Good Stock to Buy?
Although Foxconn is hardly covered by the Street’s analysts, it still boasts a Moderate Buy consensus rating. The average HNHPF stock price target stands at $20, implying a 23.38% upside from the current price.
