Foxconn and Micron delivered blockbuster AI-driven financial results, but their shares are struggling to convert explosive revenue growth into investor enthusiasm. Foxconn’s third-quarter revenue surged 47% year over year to NT$3.03 trillion, beating the NT$2.83 trillion LSEG SmartEstimate. The stock closed only 1.2% higher at NT$254 on Monday, with a year-to-date total return of about 13.7% versus a roughly 71.6% gain for Taiwan’s benchmark index.
Foxconn has become Nvidia’s largest server manufacturing partner, and AI infrastructure is increasingly displacing the iPhone as its main growth engine. In the second quarter, revenue rose 41% to NT$2.53 trillion, net profit increased 35% to NT$60 billion, and cloud and networking products accounted for 51% of sales. However, gross margin slipped to 6.12% from 6.33% a year earlier, underscoring why investors remain cautious about low-margin contract manufacturing even as AI server revenue accelerates.
The company plans aggressive scaling for Nvidia’s Vera Rubin generation, saying AI rack shipments should more than double in 2026 and Vera Rubin racks entered mass production in the third quarter. Morgan Stanley analysts expect Foxconn’s share of the high-end AI rack market to fall to about 39% this year from 51% in 2025 as standardized designs invite more competition. Bullish analysts still see opportunity: Investing.com lists 19 Buy ratings on Hon Hai with an average 12-month target of NT$347.45, while Macquarie’s target is NT$435. Foxconn’s November 12 earnings report is now seen as a key test of whether operating leverage is catching up with revenue growth.
Micron Technology similarly reported record numbers but failed to impress. Fiscal fourth-quarter revenue reached $54.23 billion, adjusted earnings hit $33.42 per share, and adjusted gross margin was 87%. The company guided fiscal first-quarter revenue to about $61.5 billion, plus or minus $1.5 billion, with adjusted gross margin of about 86.25% and adjusted earnings of $38.15 per share. Yet the upside surprise narrowed to roughly 5% above consensus, compared with 20% to 40% beats in prior quarters.
Deutsche Bank’s Melissa Weathers kept a Buy rating and $1,550 target but noted “some incremental squishiness on the margin front” from incentive-related costs. BNP Paribas’s Karl Ackerman highlighted risks that Nvidia could reduce memory specifications on future Rubin Ultra systems and that broader adoption of Compute Express Link could make memory pooling more efficient, potentially challenging assumptions about AI memory intensity. More than 75% of Micron’s fiscal 2027 output is already committed across customers, and strategic customer commitments have reached $32 billion.
Bulls argue Micron remains cheap. Cantor Fitzgerald’s C.J. Muse reiterated an Overweight rating and $2,000 target, describing the stock as “simply too cheap to ignore” at about 5.6 times his calendar 2027 earnings estimate of $188 per share. Cantor models more than $333 billion of free cash flow over the next eight quarters, with aggressive buybacks possible after CHIPS Act restrictions expire in December. D.A. Davidson’s Gil Luria said management’s expectation that memory conditions could be tighter in 2028 helps counter fears of another cyclical peak. Micron now has 26 strategic customer agreements and says supply-demand conditions may tighten further through fiscal 2027 and 2028.
For crypto markets, the reports reinforce the AI-infrastructure boom but do not directly involve any digital asset.
