Highlights

Foxconn shares spiked over 9%, reaching 225.5, buoyed by chairman Liu Young-way's optimistic statement on AI. The coup de grâce was a foreign investor upgrade raising the target price to $400, culminating in Foxconn's market valuation reclaiming the $3 trillion mark.

Sentiment Analysis

• The overall sentiment around Foxconn's future appears highly positive.
• Significant optimism due to AI potential highlighted by chairman Liu.
• Positive outlook confirmed by foreign investors with target price upgrade.

Article Text

Foxconn, a dominant player in the technology manufacturing sector, witnessed a significant surge in its market value today. This rise was fueled by confident statements from its chairman, Liu Young-way, regarding the future opportunities in artificial intelligence (AI). Speaking at a recent Taiwan Week event, Liu expressed his firm belief that the AI landscape is merely at its inception, despite market concerns about potential trends resembling temporary 'bubbles.' The evolution from dialogue models to agency models, and potentially to physical AI, indicates the vast computational power yet to be harnessed. According to Liu, the development chart for AI is still optimistic and far from reaching its peak.

Complementing these internal cues was a report from the renowned American investment firm, Goldman Sachs. Their analysis painted a favorable picture for Foxconn, attributing their optimism to the anticipated rapid growth in the AI server revenue stream and shifts towards foldable phone technology. Consequently, Goldman Sachs revised their 12-month forecast for Foxconn's share price, nudging it up from $263 to a striking $400, a decision that further solidified investor confidence and led to a trading spike.

Ultimately, Foxconn's share prices surged by over 9% during the trading day, peaking at 225.5, before closing at 223.5—a robust increase of nearly 8%. This market movement means Foxconn's capitalization once again hovers above the $3 trillion milestone, marking a significant recovery and buoyant investor sentiment.

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