On Tuesday, Foxconn, the largest contract electronics manufacturer in the world, touted a strong demand for artificial intelligence servers, which led to an increase in the stock of Nvidia (NVDA).
Young Liu, chair of Foxconn, stated in an interview with Bloomberg Television that the company is aiming to produce 20,000 GB200 NVL72 servers at the factory in 2025.2 HSBC analysts have estimated that the price of one GB200 NVL72 server is approximately $3 million. Executives at Foxconn—officially known as Hon Hai Precision Industry—said Tuesday at the annual tech day that the company was building in Mexico the world’s largest facility for assembling AI servers. These servers will house
At Foxconn’s tech day, Benjamin Ting, senior vice president of cloud enterprise solutions, stated that demand for Nvidia’s Blackwell system is “awfully huge.” Liu stated to Bloomberg that demand was “crazy,” echoing remarks made by Nvidia CEO Jensen Huang last week.
Nvidia’s Market Value Exceeds Microsoft’s
Tuesday saw a gain of over 4% in Nvidia stock, continuing gains from yesterday, when the company overtook Microsoft (MSFT) as the second-most valuable company in America.
The stock, which closed just below $133 on Tuesday, is getting close to its June 18 record closing high of $135.57. $140.76 is Nvidia’s all-time intraday high, set on June 20.
After recovering from a slump that occurred in the summer due to reports that a design flaw would cause the Blackwell system’s rollout to be delayed, Nvidia shares have more than doubled this year. Those reports came at the same time that major tech stocks fell because of disappointing earnings and Wall Street’s doubts about the wisdom of spending so much on AI.
October 8, 2024, Update: The share price of Nvidia at Tuesday’s market close has been updated in this article.
