Daiwa Securities: Foxconn is expected to enhance its position in Nvidia's supply chain, raising the target price to NT$310.

Daiwa Securities released a report stating that Foxconn is expected to consolidate its position in the Nvidia supply chain by increasing its market share in the AI server market. Analysts indicate that Foxconn's market share among all AI server manufacturers for Nvidia will gradually expand, especially after mass shipments of the GB300 server begin in the fourth quarter. Daiwa has raised its estimates for Foxconn's NVL72 server shipments for 2025 and 2026 to 12,400 units and 22,100 units respectively, meaning the company will account for 50% and 48% of Nvidia's total AI server production. Due to Foxconn's continuous improvement in integration and increased customer operational expenditure, the outlook for AI server operating profit margin has become more optimistic. Daiwa has raised Foxconn's target price from 235 NT to 310 NT, and the stock closed up 0.4% today at 252 NT.