--- title: "How big is the bubble of Foxconn Industrial Internet with 1.4 trillion market cap?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/34352853.md" description: "As the AI trend sweeps across the globe, everything from computing power and optical modules to applications has become a hot sector in the market. Recently, the AI trend, combined with Apple's release of the new iPhone 17 series, has made Foxconn Industrial Internet (FII) a direct beneficiary, with its stock price continuing to hit record highs. Relevant data shows that FII's stock has risen by over 230% this year, with a total market capitalization reaching 1.4 trillion yuan. So, as a leading company in computing power and manufacturing, is FII currently overvalued? Can its future performance sustain growth? At present, FII's bubble is evident, with its dynamic P/E ratio already reaching 57 times..." datetime: "2025-09-23T01:53:04.000Z" locales: - [en](https://longbridge.com/en/topics/34352853.md) - [zh-CN](https://longbridge.com/zh-CN/topics/34352853.md) - [zh-HK](https://longbridge.com/zh-HK/topics/34352853.md) author: "[侃见财经](https://longbridge.com/en/profiles/3206955.md)" --- # How big is the bubble of Foxconn Industrial Internet with 1.4 trillion market cap? As the AI wave sweeps across the globe, everything from computing power and optical modules to applications has become a hot sector in the market. Recently, the AI wave combined with Apple's release of the new iPhone 17 series has made Foxconn Industrial Internet (FII), as a direct beneficiary, see its stock price continue to hit record highs. Relevant data shows that FII's year-to-date increase has exceeded 230%, with its total market capitalization reaching 1.4 trillion yuan.   So, **as a leading company in computing power and manufacturing, is FII currently overvalued? Can its future performance sustain growth?** From the current perspective, FII's bubble is evident, with its dynamic P/E ratio reaching 57 times, significantly exceeding global tech giants like NVIDIA. Therefore, from this dimension, FII's valuation is in an overvalued state. From a financial report perspective, in the first half of this year, FII achieved total revenue of 360.76 billion yuan, a year-on-year increase of 35.58%; net profit of 12.113 billion yuan, up 38.61% year-on-year; and adjusted net profit of 11.668 billion yuan, a surge of 36.73% year-on-year. As a tech behemoth, achieving such growth on its massive revenue base demonstrates its strong fundamentals. However, it should be noted that FII's recent rise is not due to improved conditions in Apple's manufacturing but rather from the increased demand for AI computing power. In terms of specific revenue, in the first half of the year, FII's cloud computing segment accounted for 319.377 billion yuan, or 52.43% of total revenue; communications and mobile network equipment revenue was 287.898 billion yuan, or 47.26% of total revenue; while industrial internet revenue was only 940 million yuan, a mere 0.15% of total revenue. This shows that FII's performance surge is mainly driven by the explosive growth in cloud computing revenue. Notably, in 2024, cloud computing revenue accounted for only 40.79% of total revenue. Analysts indicate that in 2025, global cloud service providers will continue to expand capital expenditures on AI infrastructure, with AI computing power investments remaining hot. As a core supplier in global AI computing infrastructure, FII's performance surge is understandable. Specifically, in Q2, FII's overall server revenue grew over 50%, cloud service provider server revenue surged over 150% year-on-year, and AI server revenue increased over 60% year-on-year. This means FII's current valuation is supported by performance. However, it's worth noting that FII's overall gross margin is not high, standing at just 6.6% as of June 2025, far below Luxshare Precision's 11.6%. For the capital market, low gross margins are a key factor affecting valuation. Fortunately, FII has taken the lead in AI services, becoming an indispensable part of the global AI supply chain. Relevant data shows that in the AI server sector, FII has established strong R&D and smart manufacturing advantages. The company has deep collaborations with leading global clients to develop next-gen AI servers, liquid cooling cabinets, and other key technologies, providing customized solutions. Its products are widely used in high-performance AI data centers, offering robust support for global AI computing infrastructure. In the short term, FII's valuation is indeed not cheap. But in the long run, FII's core competitiveness lies in its ability to provide end-to-end services covering front-end, mid-end, and back-end solutions. Thus, from this perspective, its performance is relatively stable. Recently, media reported that AI giant OpenAI has formed a strategic partnership with Luxshare Precision, a leading Apple supply chain company in China, to co-develop a revolutionary AI device for consumers. For FII, future collaborations with global tech giants open up growth potential and imagination. Kan Jian Finance believes FII's year-to-date surge of over 230% has already priced in future growth potential, and its current valuation shows signs of a bubble. Therefore, investors should be cautious about market risks at this stage.$FII(601138.SH) ### Related Stocks - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [601138.CN](https://longbridge.com/en/quote/601138.CN.md)