Foxconn Industrial Internet's Market Capitalization Hits Trillion Yuan

By Sherry Qin

Foxconn Industrial Internet, the manufacturing arm of Foxconn Technology Group, became the latest company to reach a market capitalization of 1 trillion yuan in China amid an AI frenzy.

Shares of FII surged 10% on Friday, the daily maximum permitted in Shanghai, to close at 53.83 yuan, taking its market capitalization to 1.07 trillion yuan, equivalent to $150.06 billion. Its shares have risen over 150% so far this quarter.

FII became the first tech-hardware company to join the trillion-yuan club and amid China's push to develop artificial intelligence and rising risk appetite, which sent the Shanghai Composite Index to a 10-year high earlier this month.

A total of 13 Shanghai- and Shenzhen-listed companies have a market cap of over 1 trillion yuan, according to financial-data platform Wind Information. State-owned banks and insurance companies make up more than half of the trillion-yuan club, with Industrial and Commercial Bank of China leading with a market cap of nearly 2.5 trillion yuan.

Other companies that have market caps above that benchmark include liquor maker Kweichow Moutai, Chinese battery giant CATL and electric-vehicle maker BYD.

FII became the 10th-most valuable company listed in mainland China as of market close on Friday, according to Wind.

Foxconn, FII's Taiwan-based parent company, formally known as Hon Hai Precision Industry, is the world's largest contract electronics maker and best known for assembling Apple's iPhones.

Foxconn has diversified into high-growth areas such as AI and now plays an increasingly important role in building AI servers for U.S. tech giants including Amazon and Nvidia. Cloud and networking products, which includes AI servers, became Foxconn's top revenue contributor for the first time in the second quarter, overtaking the segment that includes smartphones.

After Foxconn said its Nvidia GB200 rack shipments are expected to improve substantially in the third quarter, analysts think FII could be one of the few players staying ahead of the curve in improving production yields, even as its peers have offered a subdued outlook.

Improvement in yields could boost FII's market share and lead to stronger profitability in the second half of the year and beyond, Citi analysts said.

Despite the sharp rally recently, Citi thinks FII's shares are still cheap, and raised its target price to 60.00 yuan from 48.00 yuan.

China's red-hot AI sector and ambition to make advanced chips at home have fanned investor enthusiasm for related stocks.

Alongside FII, shares of AI chip designer Cambricon Technologies have more than doubled over the past month to overtake Kweichow Moutai as the most valuable stock in China.

Analysts think China's stock rally still has further to run as more liquidity could flow into the equity market due to retail investors relocating assets into stocks from the property market and deposit accounts.

HSBC said AI will remain a key investment theme in the Chinese market, especially in AI infrastructure given increased capital expenditure by cloud-service providers and rising AI penetration.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

August 29, 2025 04:13 ET (08:13 GMT)