Market Insight | Hon Hai Group's stocks are all rising, FIT HON TENG Precision Industry Co., Ltd. surged nearly 4% during trading hours, NVIDIA and Hon Hai to build advanced computing center

Hon Hai Group rose across the board in the morning session. As of the time of publication, FIT HON TENG increased by 3.02% to HKD 2.73; Foxconn Technology Group rose by 2.35% to HKD 0.87; FII in A-shares surged over 5% to hit a historical high. On the news front, Hon Hai announced at Computex 2024 that it will collaborate with NVIDIA to establish an advanced computing power center with the super chip GB200 server as the core, totaling 64 cabinets and 4608 GPUs, expected to be completed by 2026. The two parties will also continue to deepen their cooperation in various fields such as AI, electric vehicles, smart factories, robots, and smart cities. CICC pointed out that FIT HON TENG is one of the world's leading server connector manufacturers, and the management expects that the server/interconnect business revenue in 2024 will increase by 15-20% year-on-year, with AI server-related product revenue accounting for 8-10% of the total revenue, a significant increase compared to 1% in 2023. Morgan Stanley has previously stated that the market has not fully recognized the potential of Hon Hai's AI server-related business