Hon Hai's stock price fell by over 4%, collaboration with OpenAI and NVIDIA still could not withstand the market selling pressure

Hon Hai (2317) Technology Day grandly opened today. Despite announcing important collaborations with OpenAI and NVIDIA, showcasing ambitions in the AI field, it couldn't prevent the Taiwanese stock market from plummeting nearly a thousand points. The stock price once dropped 4.4% in early trading, falling below the 230 NT dollar mark, with a low of 226 NT dollars. Highlights of Technology Day Fail to Halt Hon Hai's Stock Price Decline Hon Hai Technology Day took place today, with Chairman Liu Yangwei and Founder Terry Gou making a surprise appearance together. Liu revealed the group's astonishing productivity: "About 60% of the components inside a mobile phone are manufactured by Hon Hai, with a daily shipment volume reaching 1 million units." Additionally, nearly a thousand AI server cabinets can be produced weekly. The biggest highlight of the event was the strategic partnership with OpenAI. OpenAI CEO Sam Altman stated via video, "2026 holds tremendous potential," and both parties will jointly design and manufacture the next generation of AI hardware in the United States. He emphasized that with the upgrade of AI models, new hardware support is needed, and Hon Hai is the ideal partner. At the same time, Hon Hai announced a deepened collaboration with NVIDIA, planning to build a 27-megawatt GB300 data center in Taiwan in the first half of 2026. This will be Taiwan's largest AI supercomputing center and the first GB300 data center in Asia. Liu Yangwei also detailed the transformation blueprint during the meeting, expressing optimism about the development of electric vehicles in addition to AI servers. He expects the electric vehicle industry to replicate the division of labor model of the PC industry, and Hon Hai is well-prepared. Furthermore, the group showcased quantum computing and its self-developed AI large model "FoxBrain," which focuses on processing Chinese language data and aims to understand Confucian thought, with the future capability to judge right from wrong, a field that existing large language models have yet to break through. Whether Hon Hai Can Stop the Long-term Decline Depends on When AI Layout Can Translate into Substantial Profits Despite the positive news, Hon Hai's stock price is still dragged down by the broader market. The Taiwanese stock market plummeted 991.42 points today, marking the sixth-largest closing drop in history. Major stocks fell across the board, with TSMC dropping 70 NT dollars, impacting the market by about 562 points. From the perspective of market dynamics, foreign investors continue to adjust their positions in Hon Hai, with a net sell of 56,000 shares in the past five days, and the three major institutional investors have sold over 90,000 shares cumulatively for eight consecutive days. Although the company's fundamentals are solid, with October revenue reaching a historical high of 895.7 billion NT dollars, a year-on-year increase of 11.29%, short-term capital momentum is insufficient. Analysts estimate that Hon Hai's revenue in 2026 is expected to challenge 9.5 to 10.7 trillion NT dollars, with a year-on-year growth of 20% to 36%, mainly driven by demand for AI infrastructure. Although short-term impacts are influenced by market dynamics and the broader market, with the positive effects of Technology Day and solid seasonal support, the stock price is expected to stabilize. The market will continue to monitor Hon Hai's actual orders and profit contributions in the AI field. The Taiwanese stock market performed weakly today, with the weighted index closing at 26,434.94 points, down 991.42 points, and a transaction amount of 549.835 billion NT dollars. This week, it has accumulated a decline of 962.56 points, showing a "three consecutive black weekly lines" pattern