Foxconn’s Very Constructive Outlook Supports These 4 Holdings

Following Advanced Micro Devices'  (AMD)  upbeat Analyst Day comments about multi-year AI and data center demand, early this morning, Apple  (AAPL)  and Nvidia  (NVDA)  partner Foxconn (FXCOF) reported that its third-quarter 2025 revenue climbed 11% year over year, which supports some of the recent earnings reports we’ve received. However, it is the company's forward outlook that we are more focused on. 

Third-quarter AI server rack shipments grew 300% quarter-on-quarter, enabling cumulative AI server revenue to reach the “NT trillion-dollar scale” ahead of Foxconn’s previously discussed forecast. Looking to the current quarter, shipments of next-generation AI server racks are expected to sustain that double-digit sequential growth pace. Foxconn also sees its Smart Consumer Electronics business, the one that houses smartphones, posting strong sequential growth. This is nice support for our positions in Apple and Qualcomm  (QCOM) .

That near-term outlook meshes with stronger second-half 2025 capital spending levels and keeps us bullish on our shares of Nvidia and Marvell  (MRVL)  ahead of their upcoming quarterly results. We continue to see both benefiting from the telegraphed increase in 2026 capital spending levels by Big Tech and other data center announcements. 

As we discussed yesterday, we believe we are only entering the third or fourth inning for AI adoption, and that suggests 2026 isn’t likely to be the peak year for AI and data center chip demand.

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At the time of publication, TheStreet Pro Portfolio was long AAPL, QCOM, NVDA and MRVL.