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Market Chatter: Hon Hai Upbeat About Growth, AI-related CAPEX to Hit $1 Trillion in 2027

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Hon Hai Precision Industry (TPE:2317), also known as Foxconn, remains highly confident in its growth outlook, as cloud service providers' artificial intelligence-related capital expenditure has already surpassed $700 billion this year and could climb to $1 trillion next year, Reuters reported Friday, citing Chairman Young Liu.

Young Liu attributed the optimism to soaring artificial intelligence demand and rising spending by major cloud service providers. He said the traditional mid-year slowdown for tech suppliers has disappeared, adding he was upbeat about the second half unless a major "black swan" event emerges. He noted cloud providers' AI-related capital expenditure has already exceeded $700 billion this year and could reach $1 trillion next year, the news agency said.

The chipmaker earlier reported a better-than-expected 19% rise in first-quarter profit, Reuters added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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