Hon Hai Precision Stock (OTC:HNHPF), Trade Ideas

Hon Hai Precision

Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for around 54% of overall revenue in 2023. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.

Earnings

News

Markets

Tech

AAPL

HNHPF

NVDA

Hon Hai Precision Industry Co. Ltd (OTC: HNHPF)-owned Foxconn that manufactures iPhones that are the apple of the eye of Apple Inc (NASDAQ: AAPL) reported its first quarter results.

Apple Supplier Reports Revenue Dip But Expects Growth Ahead As The AI Revolution Created Room For Contributors

Foxconn Photo by Tada Images on Shutterstock

Equities

General

The revenue dip comes amid Foxconn broadening its horizons beyond being an Apple supplier. 

Apple&#39;s Key Supplier Foxconn Reports 9% Decline In Q1 Revenue, Anticipates Growth In Future

nvidia chip shutter

Analyst Color

Media

Apple supplier Foxconn is looking to capitalize on the AI server market through a strategic partnership with Nvidia.

Apple&#39;s Tech Ally Foxconn Is Making A Play For The AI Server Market With Nvidia: Ming-Chi Kuo

HON HAI PRECSON S/GDR NEW by Hon Hai Precision Industry Co. Ltd.

Hon Hai Precision Industry Co Ltd

Hon Hai Precision Industry Co. Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/hnhpf#OTC">HNHPF</a>)-owned Foxconn that manufactures iPhones that are the apple of the eye of Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) reported its first quarter results. With the first quarter being a typically quiet period, it comes as no surprise that Foxconn posted a revenue dup. However, Foxconn is expecting revenue growth in the second quarter despite it still being an off-peak season.
First quarter highlights
For the first quarter, Foxconn posted a 9.6% drop in revenue, however, Apple supplier noted that its cloud and networking segment reported significant revenue growth. But total revenue amounted to&nbsp;1.32 trillion New Taiwan dollars which equates to about $41.2 billion and it was also 28.58% lower compared to the previous, fourth, quarter. But, fourth quarter is usually when suppliers race to enable tech giants like Apple to satisfy the holiday demand. But, according to Counterpoint Research, overall shipments if smartphones declined 3.2%&nbsp;during 2023.&nbsp;
The AI hype is in the air
Although Foxconn is behind AI chipmaking leader, Nvidia Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), it still has gained momentum of late.&nbsp;
As a reminder, Foxconn teamed up with Nvidia last year. Foxconn and Nvidia joined class to develop certain &ldquo;AI factories&rdquo; which are a new class of data centers that use Nvidia chips to power all kinds of applications ranging from large language models to training autonomous vehicles. Also, Foxconn will develop smart solution platforms that are based on technologies that Nvidia developed. By gaining access to Nvidia&rsquo;s solutions, Foxconn will get to offer safe AI-powered EVs and make its mark in the new era. In simple words, Nvidia joined forces with Foxconn on its path to accelerate the AI Industrial Revolution. Considering that AI development requires more than chips, there is room for all kinds of industrial contributors as even the all-mighty Nvidia cannot do everything alone, which bodes well for Foxconn.
Despite the traditional off-peak period and a recent earthquake, higher March revenue from consumer-electronics and cloud demand fueled Apple supplier to expect revenue growth in the second quarter. Also, Foxconn shares rose almost 21% year-to-date.
Rebound hopes are based on AI
Although the sales slump offers little hope for the rebound of the Apple star, the iPhone, , the growing demand for AI servers empowered Foxconn to expect a revenue rebound in the second quarter and be optimistic for the year ahead.&nbsp;
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Foxconn (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>) a key supplier for Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), saw a 9% decline in its first-quarter revenue for 2024.
What Happened: The company&#8217;s first-quarter revenue totaled 1.32 trillion NT$ ($41.2 billion), <a href="https://www.cnbc.com/2024/04/05/apple-supplier-foxconn-posts-9percent-fall-in-first-quarter-revenue.html">CNBC</a> reported on Friday. This figure represents a 9.6% drop from the same period last year and is 28.58% lower than the fourth quarter of the previous year.
The disclosed revenue fell short of economists&#8217; predictions in an LSEG poll. Nevertheless, Foxconn projects a revenue increase for the second quarter of 2024, despite it being typically considered an &#8220;off-peak season.&#8221;
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38063416/chuck-meme-coin-that-aims-to-make-ethereum-great-again-skyrockets-25-800-hours-after-launc?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">CHUCK Meme Coin That Aims To &#8216;Make Ethereum Great Again&#8217; Skyrockets 25,800% Hours After Launch, Leaving Dogecoin, Shiba Inu In The Dust</a>
Why It Matters: The revenue dip comes amid Foxconn broadening its horizons beyond being an Apple supplier. In March, the company announced its intent to<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37689044/apples-tech-ally-foxconn-is-making-a-play-for-the-ai-server-market-with-nvidia-ming"> enter the AI server market </a>through a strategic partnership with Nvidia.
Meanwhile, Apple expects its revenue and earnings per share (EPS) in the March 2024 quarter to drop for the first time in a decade due to declining iPhone sales. Analysts have pointed out that Apple&#8217;s struggles in China are <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37953136/apples-struggles-in-china-are-less-about-apple-and-more-about-a-much-bigger-geopoli" target="_blank" rel="noreferrer noopener">less about the company</a> and involve a much bigger "geopolitical kerfuffle."
Apple is also reportedly planning to introduce <a href="https://www.benzinga.com/news/24/04/38037808/airpods-for-the-masses-apple-might-launch-cheaper-truly-wireless-earbuds-later-this-year">more affordable AirPods</a> and an updated AirPods Max version later in 2024. This move could potentially boost Foxconn&#8217;s production and subsequently its revenue.
On the stock front, shares of Foxconn closed at $9.75, with a 52-week high of $9.9 and a low of $5.6401.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38085675/were-fd-says-rich-dad-poor-dad-author-robert-kiyosaki-because-fed-chair-powell-fina?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;We&#8217;re F&#8217;d,&#8217; Says &#8216;Rich Dad Poor Dad&#8217; Author Robert Kiyosaki Because Fed Chair Powell &#8216;Finally Admitted Inflation Is Winning&#8217;</a>
Photo by Tada Images on Shutterstock
<div style="font-family: 'Lato', sans-serif">
<div>
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by Benzinga Neuro, Edited by 
 <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Pooja Rajkumari</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>
</div>

Apple's Key Supplier Foxconn Reports 9% Decline In Q1 Revenue, Anticipates Growth In Future

Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) supplier Taiwan&#8217;s&nbsp;Hon Hai Precision Industry Co Ltd&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), operating as Foxconn, is looking to capitalize on the AI server market through a strategic partnership with&nbsp;Nvidia&nbsp;Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), according to a prominent analyst.
What Happened: Ming-Chi Kuo, an analyst at&nbsp;TF International Securities, on Thursday shared his insights on Nvidia&#8217;s AI server market strategy. Kuo noted that Foxconn, also known as Hon Hai,&nbsp;is expected to benefit from&nbsp;a closer <a href="https://www.benzinga.com/news/23/01/30269370/nvidia-and-foxconn-joined-forces-to-build-autonomous-vehicles">partnership with Nvidia</a>&nbsp;in the long run.
However, he pointed out that Nvidia has recently altered its GB200 development strategy, investing more in its system development and &#8220;reducing its dependance&#8221; on Hon Hai/Ingrasys&#8217; GB200 development.
This shift may have led to an overly optimistic market view of Hon Hai/Ingrasys&#8217;&nbsp;system development advantages, order visibility,&nbsp;and GPM in GB200.
&#8220;GB200&#8221; is a GPU that is tailored for use in data centers. It was unveiled by the company in October as part of its AI product strategy for 2024 and 2025.
See Also:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37657502/now-is-not-the-time-to-throw-in-the-towel-on-tesla-says-wedbushs-dan-ives-ai-and-fs?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Now Is NOT The Time To Throw In The Towel&#8217; On Tesla, Says Wedbush&#8217;s Dan Ives: AI And FSD Could Drive The Stock Over $1 Trillion</a>
Kuo also highlighted that the&nbsp;<a href="https://www.benzinga.com/news/23/08/33998198/nvidia-said-to-be-tripling-production-of-worlds-hottest-ai-chip-for-2024-but-will-supply-chain-snags">current shipment visibility</a> of GB200&nbsp;is not high, and it&nbsp;is currently difficult for most&nbsp;suppliers to estimate the actual&nbsp;contribution. Customer concerns about adopting&nbsp;Grace&nbsp;are one of the main&nbsp;reasons for the current low&nbsp;visibility of GB200 shipments.
&#8220;Customer concerns about adopting Grace are: 1) the ROI of continuing to build AI computing power and 2) the bargaining power against Nvidia will continue to erode in the long term,&#8221; he stated. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">GB200為2024年AI伺服器研究的關注焦點，但目前此對鴻海貢獻的能見度仍有限 / GB200 to be the focus of AI server research in 2024, but limited contribution visibility to Hon Hai currently<a href="https://t.co/P2sl9pyS2L">https://t.co/P2sl9pyS2L</a>
&mdash; 郭明錤 (Ming-Chi Kuo) (@mingchikuo) <a href="https://twitter.com/mingchikuo/status/1768130765962010715?ref_src=twsrc%5Etfw">March 14, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Why It Matters: Foxconn&#8217;s move to tap into the AI server market comes at a time when the company is experiencing a revenue dip due to a quieter market demand. In January earlier this year, the Apple supplier forecasted a decline in first-quarter revenue <a href="https://www.benzinga.com/news/24/01/36506765/apples-key-supplier-foxconn-signals-revenue-dip-in-market-cool-down">following a slow market demand</a> in the last quarter.&nbsp;
The first quarter tends to be slower for tech companies like Foxconn, following the busy holiday season when they supply electronics to major vendors such as Apple for Western markets.
Check out more of Benzinga's Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:&nbsp;<a href="https://www.benzinga.com/news/24/03/37664154/onlyfans-has-over-120-police-complaints-about-non-consensual-content-sharing-report?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">OnlyFans Has Over 120 Police Complaints About Non-Consensual Content Sharing: Report</a>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Apple's Tech Ally Foxconn Is Making A Play For The AI Server Market With Nvidia: Ming-Chi Kuo

Key&nbsp;Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) supplier, Taiwan&#39;s&nbsp;Hon Hai Precision Industry Co Ltd&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/hnhpf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">HNHPF</a>), operating as&nbsp;Foxconn,&nbsp;forecasts a decline in first-quarter revenue following a quieter market demand in the previous quarter.&nbsp;
Traditionally, the first quarter tends to be slower for tech companies like Foxconn, following the busy holiday season when they supply electronics to major vendors such as Apple for Western markets.
This year&#39;s first quarter will likely see a year-on-year revenue drop despite the expected seasonal slowdown similar to the past three years, Reuters reports.
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/10/35213479/apple-and-suppliers-face-unanticipated-sales-slump-despite-new-launches" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Apple and Suppliers Face Unanticipated Sales Slump Despite New Launches</a>
Foxconn did not provide specific numerical guidance but noted that the first quarter of last year recorded a record high, boosted by the post-COVID resumption of normal factory operations, Bloomberg notes.
In December, Foxconn&#39;s revenue reached T$460.1 billion ($14.84 billion), a 26.9% decrease compared to the previous year but still better than expected.&nbsp;
The fourth quarter saw a 5.4% year-on-year decline in revenue to T$1.851 trillion, slightly above analysts&#39; estimates.
The company attributed the &quot;flattish&quot; revenue in its smart consumer electronics segment, including smartphones, to reduced market demand.&nbsp;
Foxconn has earmarked considerable investments in India as it looks to diversify risk exposure by shifting its&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/08/33485951/apple-supplier-foxconn-raises-investment-plans-for-new-component-plants-in-indias-karnataka" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">base from China</a>.
Apple&#39;s stock experienced a decline this week following&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/24/01/36453039/why-is-apple-stock-sliding-tuesday" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">analyst downgrades over</a>&nbsp;concerns about iPhone demand, yet it remains the most valuable company globally by market value.
Foxconn plans to report its fourth-quarter earnings on March 14 and update its outlook.&nbsp;
Price Action:&nbsp;AAPL shares traded lower by 0.27% at $181.43 on the last check Friday.
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/11/35912061/key-apple-supplier-foxconn-faces-heightened-regulatory-oversight-in-chinas-major-manufacturing-r" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Key Apple Supplier Foxconn Faces Heightened Regulatory Oversight In China&#39;s Major Manufacturing Regions: Report</a>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons

Guidance

Apple's Key Supplier Foxconn Signals Revenue Dip in Market Cool-Down

In a recent development, shares of Apple&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) suppliers took a hit following Barclays downgrade of the tech behemoth due to a potential decrease in product demand in 2024.
What Happened: CNBC<a href="https://www.cnbc.com/2024/01/03/shares-of-apple-suppliers-fall-after-barclays-downgrades-iphone-maker.html"> reported</a> on Tuesday that the shares of suppliers associated with Apple in Asia experienced a drop after the Barclays downgrade. Taiwan Semiconductor Manufacturing Company (TSMC), a top-tier manufacturer of advanced processors for companies such as Apple and Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), saw a more than 2% decline in shares during morning trading. Foxconn (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), a major Apple supplier and the world&#8217;s largest electronics contract manufacturer, also experienced a 1.33% drop in shares.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/23/12/36430587/will-this-meme-coin-make-you-rich-avalanches-mystery-collection-could-change-your-fortune?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Will This Meme Coin Make You Rich? Avalanche&#8217;s Mystery Collection Could Change Your Fortune</a>
Moreover, tech and chip stocks such as Samsung Electronics and SK Hynix (OTC: HXSCL) dropped over 2%, while LG Electronics fell 1.78%, leading to a 1.85% drop in South Korea&#8217;s Kospi. This situation developed after Barclays demoted Apple&#8217;s stock to underweight on Tuesday and lowered its price target to $160 from $161, citing weak iPhone 15 sales and a potential decrease in demand for iPhone 16 and other products. Consequently, Apple&#8217;s shares ended the day 3.58% lower.
Despite the downgrade, experts in the industry maintain that Apple&#8217;s suppliers continue to see strong growth. 
&#8220;There&#8217;s still 200 to 300 million iPhones that get replaced onto 5G, at least for the next 24 months,&#8221; stated Ray Wang of Constellation Research on CNBC&#8217;s &#8220;Street Signs Asia.&#8221; 
In a report dated Jan. 3, UBS claimed that TSMC is &#8220;poised for a strong rebound in 2024&#8221; and sustained a buy rating, albeit with a lowered price target.
Why It Matters: Apple&#8217;s $85 billion services business faces potential impacts from <a href="https://www.benzinga.com/government/24/01/36463729/apples-85b-services-business-in-crosshairs-of-legal-and-regulatory-rulings">a series of legal and regulatory rulings</a> expected in 2024. Furthermore, Apple&#8217;s stock was <a href="https://www.benzinga.com/news/24/01/36453039/why-is-apple-stock-sliding-tuesday">downgraded by Barclay</a>&#8216;s analyst Tim Long from Equal-Weight to Underweight, resulting in a lower price target.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/01/36445025/crypto-experts-eye-sky-high-bitcoin-values-in-2024-whats-driving-the-bullish-predictions?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Crypto Experts Eye Sky-High Bitcoin Values In 2024: What&#8217;s Driving The Bullish Predictions?</a>
Image Via Shutterstock
<div style="font-family: 'Lato', sans-serif">
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by 
 Benzinga Neuro, Edited by 
 
 <a href="None" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none"> 
 Pooja Rajkumari</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the 
 extensive Benzinga Ecosystem, including native data, APIs, and more to 
 create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>

HXSCL

Apple Suppliers See Share Price Drop As Barclays Downgrades iPhone Maker

Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/01/30455913/apples-chinese-suppliers-win-expansion-permits-in-india-as-iphone-maker-attempts-to-reduce-dependenc" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Chinese partner</a>,&nbsp;Luxshare Precision Industry Co, is poised to take over an iPhone assembly site from Taiwanese competitor&nbsp;Pegatron Corp.&nbsp;
This move is part of Apple&#39;s strategy to strengthen ties with&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/01/30517475/apple-anticipates-india-production-share-to-rise-25-in-attempt-to-diversify-base-beyond-china" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">China-based suppliers</a>&nbsp;and enhance relations with Beijing.&nbsp;
Luxshare is acquiring a 62.5% stake in Pegatron&#39;s Kunshan unit in eastern China for approximately 2.1 billion yuan ($300 million), Bloomberg&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2023-12-28/apple-supplier-luxshare-to-control-taiwan-rival-s-iphone-site?srnd=technology-vp&amp;sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">cites</a>&nbsp;a recent exchange filing.
This acquisition will likely position Luxshare more competitively against Taiwan&#39;s&nbsp;Hon Hai Precision Industry Co&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/hnhpf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">HNHPF</a>), operating as&nbsp;Foxconn Technology Group, Apple&#39;s leading manufacturing partner. Foxconn assembles around 70% of all iPhones, primarily in central China.
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/08/33485951/apple-supplier-foxconn-raises-investment-plans-for-new-component-plants-in-indias-karnataka" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Apple Supplier Foxconn Raises Investment Plans for New Component Plants in India&#39;s Karnataka</a>
Apple&#39;s focus on fostering relationships with Chinese suppliers, including Luxshare, is driven by its reliance on the Greater China region, which accounts for about 20% of its total sales.&nbsp;
CEO Tim Cook has emphasized the mutual benefits of Apple&#39;s relationship with the second-largest economy in the world.
Luxshare has rapidly grown within Apple&#39;s supply chain, producing various products, including iPhones, Apple Watches, and the mixed-reality headset Vision Pro.&nbsp;
CEO Tim Cook&#39;s recent visit to a Luxshare plant highlighted the company&#39;s commitment to Apple&#39;s carbon emission reduction goals.
However, amid&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/09/34305372/apples-iphone-to-bear-brunt-of-us-china-tensions-as-the-asia-giant-looks-to-extend-ban-to-state-agen" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">ongoing tensions between</a>&nbsp;Washington and Beijing, Apple is also diversifying its production, shifting some away from the region.&nbsp;
It is expanding its manufacturing footprint in India, relying on Foxconn and Pegatron for this initiative.
Price Action:&nbsp;AAPL shares traded higher by 0.44% at $194.01 on the last check Thursday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Company

Government

Regulations

Apple's Chinese Partner Luxshare Set to Transform iPhone Production Landscape with Major Acquisition

NXPI

"The NXP S32G3 Vehicle Networking Processor Is Utilized In High-End EV Series Released By Chinese Enterprises And Will Be Used In Hon Hai Technology's (Foxconn) Model C Series, According To Industry Sources." - DigiTimes Alert

<a href="https://www.wsj.com/tech/apple-aims-to-make-a-quarter-of-the-worlds-iphones-in-india-ab7f6342" title="https://www.wsj.com/tech/apple-aims-to-make-a-quarter-of-the-worlds-iphones-in-india-ab7f6342">https://www.wsj.com/tech/apple-aims-to-make-a-quarter-of-the-worlds-iphones-in-india-ab7f6342</a>

INDA

The Wall Street Journal Reported Late Thursday, Apple, Suppliers Aim to Build Over 50M iPhones In India Annually, Citing Sources

Founded in 1976 by&nbsp;Steve Jobs,&nbsp;Steve Wozniak&nbsp;and&nbsp;Ronald Wayne, Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) holds the largest market capitalization today at $3.021 trillion.
Google, founded in 1988 by&nbsp;Larry Page&nbsp;and&nbsp;Sergey Brin, two Ph.D. students at Stanford University, now operates as&nbsp;Alphabet Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) with a market cap of $1.722 trillion.
Despite the companies&#8217; different business models — Apple as a hardware giant and Google/Alphabet as a search and advertising giant — their history reveals a complex relationship. In 2001, Google&#8217;s co-founders considered Jobs as their CEO, but after the iPhone launch and Google&#8217;s acquisition of Android, tensions arose.
At Apple's 2010 town meeting, Jobs famously said, "We did not enter the search business. They entered the phone business. Make no mistake, they want to kill the iPhone. We won&#8217;t let them. This ‘don&#8217;t be evil' mantra is bullshit.&#8221;
While Google is the default search engine on Apple products, recent reports suggest Apple&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/10/35477483/sundar-pichai-led-google-reportedly-paid-over-26b-in-2021-to-apple-others-for-maintaining-its-defaul" rel="noreferrer noopener">receives substantial payments</a>&nbsp;for maintaining this status.
Both companies compete in various sectors, including mobile phones, applications, and services, such as mapping apps, app stores, music services, and cloud storage.
See Also:&nbsp;<a target="_blank" href="https://www.benzinga.com/trading-ideas/long-ideas/23/11/35912780/steve-ballmer-vs-satya-nadella-one-microsoft-ceo-would-have-turned-your-1000-investment-" rel="noreferrer noopener">Steve Ballmer Vs. Satya Nadella: One Microsoft CEO Would Have Turned Your $1000 Investment Into A Fortune</a>
But which stock would have given you better returns had you invested money at the end of last year? The answer may surprise you.
Figure: Comparison of market price trajectory of AAPL and GOOGL from 12-30-2022 to 11-30-2023
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/08014802/newplot.png" alt="" class="wp-image-157499" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/08014802/newplot.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/08014802/newplot-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
As per the first graph, Apple&#8217;s price a year ago was $129.21 per share and rose to $189.37 at the end of last month. Conversely, Google's share price was $88.23 a year ago and spiked to $134.99 in the same period. 
Figure: Comparison of scaled returns delivered by AAPL and GOOGL from 12-30-2022 to 11-30-2023
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/08014809/newplot-1.png" alt="" class="wp-image-157500" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/08014809/newplot-1.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/08014809/newplot-1-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
If you had invested $1,000 in Apple stock on Dec. 30, 2022, today you would have had $1465.62 by Nov. 30 this year.  
On the other hand, if an investor had put $1,000 in Google on the same day, they'd have been left with $1,529.98 by the end of last month.  
Why Has Cupertino Lagged Google&#8217;s Gains?
Google&#8217;s diversified revenue stream, particularly from search and ads, contributed to its outperformance over Apple, which heavily relies on hardware sales.
Apple faced challenges such as supply chain disruptions, soft demand, and market competition, leading to a fourth consecutive quarter of year-over-year revenue decline in September 2023.&nbsp;
Its main iPhone assembler&nbsp;Hon Hai Precision Manufacturing Co. Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), aka&nbsp;Foxconn, shut down its main plant in China in October 2022. The tech giant also faced a setback in China, its key market this year, as&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/23/11/35936305/apple-sales-volume-underperforms-huawei-xiaomi-on-chinas-singles-day-report" rel="noreferrer noopener">domestic competitors such as</a>&nbsp;Huawei&nbsp;and&nbsp;Xiaomi Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACF#OTC">XIACF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/XIACY#OTC">XIACY</a>) began to offer compelling offerings.
In contrast, Alphabet benefited from a recovery in ad spending and reported higher third-quarter revenues primarily from search and YouTube ads.
Analysts are more optimistic about Alphabet&#8217;s future, with a mean price target suggesting a 14.47% upside compared to Apple&#8217;s 5.29% downside. While Apple may rebound if consumers strengthen, Alphabet faces regulatory risks, including an&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/09/34516675/googles-high-stakes-antitrust-trial-search-engine-giant-contends-its-quality-not-monopoly-that-drive" rel="noreferrer noopener">antitrust lawsuit</a>. If the company loses the legal battle, it might impact its search business. Its AI opportunity could, however, prove to be a strong revenue driver for the company.
Read Next: <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/11/35666290/warren-buffett-said-he-blew-it-by-not-investing-early-in-amazon-but-would-it-have-fetche">Warren Buffett Said He ‘Blew It' By Not Investing Early In Amazon — But Would It Have Fetched Better Returns Than Apple?</a>

Long Ideas

GOOG

GOOGL

XIACF

XIACY

Apple's Market Cap Might Be Way Bigger Than Google's — But Which Tech Giant Delivered Better Stock Returns This Year?

BTQ Technologies Corp. (NEO:&nbsp;BTQ) (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/BTQQF#OTCQX">BTQQF</a>) (FRA: NG3), a publicly-listed and leading quantum technology company focused on securing mission-critical networks, is pleased to announce that, together with its wholly-owned unit BTQ AG, it has entered into a Research and Collaboration Agreement (the &quot;Agreement&quot; or &quot;Research Program&quot;) with Hon Hai&nbsp;Research Institute, a key think tank for Hon Hai Technology Group (Foxconn), the world&#39;s largest electronics manufacturer and a leading technological solution provider. The goal of the collaboration is to promote the standardization of post-quantum cryptography.

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

BTQQF

BTQ and Hon Hai Research Institute Team Up To Help Pioneer Post-Quantum Cryptography Standards

&nbsp;
<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/10/35367494/key-apple-supplier-foxconn-faces-chinese-scrutiny-following-taiwan-presidential-run-announcement" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Chinese tax regulators</a>&nbsp;reportedly penalized the&nbsp;Hon Hai Precision Industry Co Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hnhpf#OTC">HNHPF</a>)&nbsp;Foxconn Technology Group&nbsp;subsidiary with a 20,000 yuan ($2,800) fine for overstating expenses. Meanwhile, Beijing is exploring the&nbsp;Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) iPhone maker&#39;s operations.
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/11/35874084/apple-faces-rising-competition-in-china-as-rivals-gain-ground" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Apple Faces Rising Competition In China As Rivals Gain Ground</a>
The&nbsp;Foxconn Industrial Internet Co&nbsp;unit in the central Chinese city of Wuhan faced the penalty for its accounting of research and development expenses in 2021 and 2022, Bloomberg&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2023-11-22/china-fines-iphone-maker-foxconn-2-800-amid-major-tax-probe?srnd=technology-vp&amp;sref=TBDibEcD" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">cites</a>&nbsp;National Center for Public Credit Information.
China is already scrutinizing the Apple supplier&#39;s tax affairs in the southern provinces of Guangdong and Jiangsu and land use in Hubei and Henan, where the company makes most of its iPhones.
Foxconn founder Terry Gou announced his candidacy for Taiwan&#39;s presidential election in January, stating that the Chinese government would not dare interfere with his business empire. Despite a reduction in campaign activities following the announcement of investigations, the billionaire continues his presidential race.&nbsp;
FII, a key contract manufacturer for Foxconn in China, employs nearly 200,000 people.
Foxconn&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/08/33485951/apple-supplier-foxconn-raises-investment-plans-for-new-component-plants-in-indias-karnataka" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">earmarked over $1.2 billion</a>&nbsp;for southern India&#39;s Karnataka state and looked to add two-component factories. At least one of the new factories in Karnataka will produce Apple parts, including for iPhones. Foxconn&#39;s move suggests a possible hastening of suppliers shifting their production capabilities away from China, in line with Western investors and companies seeking other options due to regulatory uncertainties in China.

Legal

Key Apple Supplier Foxconn Faces Heightened Regulatory Oversight In China's Major Manufacturing Regions: Report

Taiwanese electronics powerhouse Foxconn, known officially as Hon Hai Precision Industry Co. (OTCPK: HNHPF), has reportedly launched two prototype low-Earth orbit (LEO) satellites into space. Foxconn, a major supplier for Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), is primarily known for being the world&#8217;s largest producer of iPhones.
What Happened: Foxconn launched the satellites from Vandenberg Space Force Base in southern California using a SpaceX rocket, <a href="https://www.bloomberg.com/news/articles/2023-11-12/apple-s-top-iphone-supplier-goes-to-outer-space-with-new-satellites">Bloomberg</a> reported. The move comes as part of an initiative to diversify its operations and cater to the growing demand for space-based communication services, especially as its core businesses such as smartphones and laptops face multiple challenges.
The two satellites, dubbed PEARL-1H and PEARL-1C, were co-developed with Taiwan's National Central University. These compact, backpack-sized satellites carry cameras, communication devices, and other equipment, and are set to orbit Earth every 96 minutes at an altitude of 520 kilometers, the report said. 
Unlike Elon Musk's Space Exploration Technologies Corp., which has launched over 5,000 satellites to low-Earth orbit for its Starlink constellation, Foxconn aims to manufacture satellites mainly for corporate and government clients, as per the report. 
Why It Matters: Foxconn&#8217;s venture into space technology signifies a strategic shift for the company, as it looks to <a href="https://www.benzinga.com/news/21/10/23411090/apple-supplier-foxconn-unveils-3-evs-including-sedan-suv-bus-what-you-need-to-know">diversify its portfolio</a> and reduce reliance on traditional businesses facing numerous challenges. 
For the second quarter, Foxconn&#8217;s net profit dipped to T$33 billion ($1.02 billion) from a revised T$33.29 billion in the corresponding period last year. The company then predicted revenue from its consumer electronics products to fall slightly in the third quarter as compared to the year-ago owing to falling sales. 
Photo by Tada Images on Shutterstock
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next:<a href="https://www.benzinga.com/markets/equities/23/11/35740617/tesla-threatens-cybertruck-buyers-with-lawsuit-and-50k-in-damages-if-they-opt-to-sell-within-a-y">&nbsp;Tesla Threatens Cybertruck Buyers With Lawsuit And $50K In Damages If They Opt To Sell Within A Year Of Purchase</a>
<div style="font-family: 'Lato', sans-serif">
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by 
 Benzinga Neuro, Edited by 
 
 <a href="None" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none"> 
 Anan Ashraf</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the 
 extensive Benzinga Ecosystem, including native data, APIs, and more to 
 create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/anan-ashraf" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>

SPACE

iPhone Supplier Foxconn Takes A Cosmic Leap, Diversifies Into Space With Prototype Satellites

Foxconn Technology Group (Hon Hai Precision Industry) is expected to have enjoyed a strong October thanks to orders for Apple's M3-powered new MacBook Pro and iMac. In addition to assembly, Foxconn is also responsible for its components such as chassis, according to sources from the upstream supply chain.

'Foxconn October Sales Estimate To Rise With Apple New M3 Product Orders' - DigiTimes Alerts

Foxconn Technology Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), a major supplier for Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), is under investigation by Chinese authorities over tax and land use, according to the company&#8217;s statement. The company&#8217;s founder, Terry Gou, is currently running for the presidency of Taiwan.
China's state-backed Global Times informed that Chinese tax authorities are scrutinizing Foxconn's facilities in southern Guangdong province and eastern Jiangsu, <a href="https://www.wsj.com/world/china/apple-supplier-foxconn-faces-chinese-investigations-c73880ce?mod=lead_feature_below_a_pos1">reported</a> The Wall Street Journal. Meanwhile, natural resources authorities are conducting on-site investigations into the company's land use in Henan and Hubei provinces.
See Also:&nbsp;<a href="https://www.benzinga.com/news/23/10/35361772/donald-trump-vows-to-unveil-massive-information-and-100-evidence-related-to-stolen-election-claims-w?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Donald Trump Vows To Unveil &#8216;Massive Information And 100% Evidence&#8217; Related To Stolen Election Claims: &#8216;We Will Never Let 2020 Happen Again&#8217;</a>
Foxconn, also known as&nbsp;Hon Hai Precision Industry,&nbsp;manufactures for Apple in three&nbsp;of the provinces under investigation. The company issued a statement&nbsp;affirming its commitment to abide&nbsp;by the law and to cooperate actively with the related&nbsp;units on the related work&nbsp;and operations.
The investigations come amid Gou&#8217;s campaign for the Taiwanese presidency. Critics argue that&nbsp;his business interests in China&nbsp;make him susceptible to pressure&nbsp;from Beijing. Gou&#8217;s candidacy could potentially impact Taiwan&#8217;s relationship with Beijing.
Read Next:&nbsp;<a href="https://www.benzinga.com/news/23/10/35365655/apple-caught-off-guard-by-industrys-sudden-ai-fever-as-executives-fret-over-pretty-big-miss-says-gur">Apple Caught Off Guard By Industry&#8217;s Sudden AI Fever As Executives Fret Over &#8216;Pretty Big Miss,&#8217; Says Gurman — Here&#8217;s Where Tech Giant Is In Its Pursuit</a>
Photo by Tada Images on Shutterstock
<div style="font-family: 'Lato', sans-serif">
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by 
 Benzinga Neuro, Edited by 
 
 <a href="None" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none"> 
 Pooja Rajkumari</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the 
 extensive Benzinga Ecosystem, including native data, APIs, and more to 
 create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>

FXCOF

Key Apple Supplier Foxconn Faces Chinese Scrutiny Following Taiwan Presidential Run Announcement

Nvidia Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) might benefit from the U.S. advanced artificial intelligence&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/10/35286394/nvidia-stock-is-falling-tuesday-heres-why" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">technology embargo on</a>&nbsp;China. Chinese gamers will now have to dole out more than double the list price of Nvidia&#39;s flagship consumer graphics card.&nbsp;
The restrictions also fuel the chances of chips entering China via unofficial routes, including creating&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/06/32917499/chinese-vendors-bypass-us-embargo-to-supply-high-end-nvidia-a100-ai-chips-report-reveals-hidden-mark" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">an underground market</a>.
Prices for the year-old GeForce RTX 4090, originally listed at $1,599, climbed up to the levels of 29,000 yuan ($3,970) on&nbsp;Alibaba Group Holding Ltd&#39;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) Taobao marketplace as retailers begin to pull it from their shelves, Bloomberg&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2023-10-20/nvidia-s-rtx-4090-caught-up-in-us-china-trade-war?srnd=technology-vp&amp;sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reports</a>.&nbsp;
The U.S. prohibited China&#39;s access to RTX 4090 without a U.S. government license after its performance exceeded the threshold set by American officials.
The U.S. imposed fresh sanctions, citing national security threats. The West aims to prevent China&#39;s military from accessing gear that can help develop advanced AI applications, targeting specialized accelerator chips like Nvidia&#39;s A800.&nbsp;
Desktop PCs that include the RTX 4090 card among their specifications are still available to buy from some Chinese outlets and will also face U.S. curbs.
Meanwhile, Nvidia remains focused on&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/23/10/35328208/whats-going-on-with-nvidia-stock-thursday" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">consolidating its fortress</a>&nbsp;by expanding collaboration with critical&nbsp;Apple Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/aapl#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">AAPL</a>) partner,&nbsp;Hon Hai Precision Industry Co Ltd&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/hnhpf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">HNHPF</a>), operating as&nbsp;Foxconn&nbsp;to develop a new class of data centers, including the development of AI-powered electric vehicle and robotics platforms.
While on one hand, Nvidia had acknowledged no harm from the U.S. sanctions, the U.S. chipmakers have been pressing the government to go softer&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/10/35126384/whats-going-on-with-nvidia-stock-today" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">on the China policy</a>.
Analysts remain divided over the impact of the restrictions on Nvidia, considering the substantial size of the long-term TAM,&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/10/35308526/whats-going-on-with-nvidia-stock-wednesday" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">regardless of China&#39;s participation</a>.
Price Action:&nbsp;NVDA shares traded lower by 0.95% at $417.03 premarket on the last check Friday.

BABA

Is Nvidia Benefiting From US Sanctions On China?

Nvidia Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) stock is trading higher Thursday after key partner&nbsp;Taiwan Semiconductor Manufacturing Company Ltd&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NASDAQ">TSM</a>) set the momentum up with its third-quarter earnings beat and upbeat outlook.
TSMC&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com//node/35323506" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reported a third-quarter</a>&nbsp;revenue decline of 14.6% year-on-year to $17.28 billion, beating the consensus of $17.07 billion. EPS of $1.29 beat the&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/calendars/earnings" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">consensus of $1.17</a>.
Advanced technologies, defined as 7-nm and more advanced technologies, accounted for 59% of total wafer revenue.&nbsp;
The Taiwan contract chipmaker expects Q4 revenue of $18.8 billion - $19.6 billion vs. the consensus of $18.65 billion.&nbsp;
CEO C. C. Wei acknowledged early signs of demand stabilization in the PC and smartphone markets during the conference call.&nbsp;
He expects healthy growth in 2024. TSMC looks to spend $32 billion on growing and upgrading capacity in 2023, beating the analyst consensus of $30.5 billion.
Nvidia stock price also seems to reflect its&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/10/35308526/whats-going-on-with-nvidia-stock-wednesday" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">expanded partnership with</a>&nbsp;critical&nbsp;Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) partner,&nbsp;Hon Hai Precision Industry Co Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hnhpf#OTC">HNHPF</a>), operating as&nbsp;Foxconn&nbsp;to develop a new class of data centers, including the development of AI-powered electric vehicle and robotics platforms.
Meanwhile, Nvidia analysts reserved a mixed outlook over the U.S. fresh embargo on advanced artificial intelligence technology.&nbsp;
Price Action:&nbsp;NVDA shares traded higher by 1.25% at $427.25 on the last check Thursday.

What's Going On With Nvidia Stock Thursday?

Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is at the forefront of the artificial intelligence revolution. CEO Jensen Huang&#8216;s <a href="https://www.benzinga.com/news/23/10/35308526/whats-going-on-with-nvidia-stock-wednesday" target="_blank" rel="noreferrer noopener">recent visit to Taiwan</a> hinted at yet another ambitious move in this sector.
What Happened: Nvidia has partnered with Foxconn, the assembler of Apple&#8216;s iPhone, to accelerate what it calls the &#8220;AI industrial revolution.&#8221; Foxconn, formally called Hon Hai Precision Manufacturing Company Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), will incorporate Nvidia technology into developing cutting-edge data centers.
These data centers will power various applications, including the digitalization of manufacturing and inspection workflows, AI-driven electric vehicle and robotics platforms, and an expanding array of language-based generative AI services.&nbsp;
Foxconn has significant electric vehicle ambitions, recently acquiring&nbsp;<a target="_blank" href="https://www.benzinga.com/news/21/10/23188453/apple-supplier-foxconn-confirms-deal-to-buy-lordstown-ohio-plant-fisker-pear-could-come-sooner" rel="noreferrer noopener">Lordstown Motor&#8216;s Ohio factory</a>&nbsp;and embarking on EV manufacturing.
In this venture, the Nvidia partnership represents a significant leap for Foxconn as it builds specialized supply chains, including those for chips and batteries, to facilitate its EV production.
Huang and Foxconn CEO Young Liu revealed their intention to establish AI factories, focusing on manufacturing intelligence.
&#8220;A new type of manufacturing has emerged — the production of intelligence. And the data centers that produce it are AI factories,&#8221; said Huang. &#8220;Foxconn, the world&#8217;s largest manufacturer, has the expertise and scale to build AI factories globally. We are delighted to expand our decade-long partnership with Foxconn to accelerate the AI industrial revolution.&#8221;
See Also:&nbsp;<a target="_blank" href="https://www.benzinga.com/money/best-artificial-intelligence-stocks" rel="noreferrer noopener">Best Artificial Intelligence Stocks</a>
The Blueprint: The AI factories envisioned by Nvidia and Foxconn will feature an Nvidia GPU computing infrastructure tailored to process, refine, and transform massive datasets into valuable AI models and tokens. This accelerated computing infrastructure will be driven by the Nvidia GH200 Grace Hooper super chip and AI enterprise software.
Foxconn&#8217;s smart solutions platforms, including smart EVs, smart manufacturing robotic systems, and smart city solutions, will utilize Nvidia technologies.
Foxconn has also expressed interest in establishing its own AI factory, leveraging the Nvidia Omniverse platform and Isaac and Metropolis frameworks to meet the stringent production and quality standards of the electronics industry. The company said that such an AI factory could enhance AI training and inference, streamline factory workflows, and conduct simulations in the virtual world before deploying in the physical world.
Why It Matters: The emergence of AI factories represents a potential challenge to the Gigafactories operated by companies like Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). Nvidia&#8217;s collaboration with Foxconn, combining Nvidia&#8217;s AI expertise with Foxconn&#8217;s manufacturing capabilities, could pose a competitive threat, challenging Tesla&#8217;s global manufacturing reach and vertical integration.
Tesla currently operates multiple Gigafactories worldwide — in the United States, Germany, and China — giving it a significant edge in the electric vehicle industry. The Nvidia-Foxconn partnership could possibly disrupt this landscape.
Nvidia closed Wednesday&#8217;s session down 3.96% to $421.96, while Foxconn&#8217;s U.S.-listed ADRs fell 1.52% to $6.35, according to&nbsp;<a target="_blank" href="https://benzinga.grsm.io/lxquj26b2sag" rel="noreferrer noopener">Benzinga Pro data.</a>
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/08/34037764/is-nvidia-stock-a-better-bargain-than-tesla-chipmakers-epic-q2-faces-investor-cauti" target="_blank" rel="noreferrer noopener">Is Nvidia Stock A Better Bargain Than Tesla? Chipmaker&#8217;s Epic Q2 Faces Investor Caution Ahead Of Powell&#8217;s Jackson Hole Speech</a>
Photo courtesy: Foxconn

Asia

RIDEQ

TSLA

Forget Gigafactories: Nvidia Teams Up With Big Apple Supplier To Build 'AI Factories' — Should Tesla Be Worried?

U.S. stocks traded lower toward the end of trading, with the S&amp;P 500 falling more than 1.3% on Wednesday to 4,314.60. The Dow traded down 0.98% to 33,665.08 while the NASDAQ fell 1.62% to 13,314.30. 
These are the top stocks that gained the attention of retail traders and investors throughout the day:
Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) closed the day at -4.78%, with a price of $242.68, after hitting an intraday high of $254.63 and a low of $242.08. The electric vehicle giant reported a <a href="https://www.benzinga.com/news/earnings/23/10/35318136/tesla-q3-earnings-highlights-revenue-miss-eps-miss-cybertruck-launch-set-for-november-and-more">revenue miss</a> in its third-quarter financial results, attributing the fluctuations to growth in vehicle deliveries and other business lines. The anticipated <a href="https://www.benzinga.com/news/earnings/23/10/35318136/tesla-q3-earnings-highlights-revenue-miss-eps-miss-cybertruck-launch-set-for-november-and-more">Cybertruck launch</a> is set for November 2023.
Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) ended the day at -2.68%, priced at $346.19, peaking at $354.79 and bottoming at $344.73 during the day. The company reported a <a href="https://www.benzinga.com/news/earnings/23/10/35317946/netflix-stock-soars-following-q3-results-eps-beat-revenue-beat-strong-subscriber-growth">7.8% year-over-year increase</a> in third-quarter revenue, beating estimates due to higher-than-expected member growth and the ongoing expansion of streaming globally.
American Airlines Group Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) saw a decline of -4.86%, closing at $11.36 after reaching an intraday high of $11.74 and a low of $11.22. The airline&#8217;s stock was affected by uncertain guidance from United Airlines Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), leading to a <a href="https://www.benzinga.com/news/earnings/23/10/35310545/whats-going-on-with-american-airlines-stock-today">selloff</a> in the stock.
Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) closed at -3.96%, with a price of $421.96, after reaching an intraday high of $432.19 and a low of $418.25. The company is engaged in multiple endeavors to boost its revenue stream, including a partnership with iPhone Maker partner, Hon Hai Precision Industry Co Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), to develop AI-powered electric vehicle and robotics platforms. However, Wall Street analysts estimate a near-term to long-term impact on Nvidia due to the additional U.S. <a href="https://www.benzinga.com/news/23/10/35308526/whats-going-on-with-nvidia-stock-wednesday">embargo on China</a>.
Roku Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>) plummeted -9.25%, closing at $62.1 after hitting an intraday high of $66.8 and a low of $62.02. The company&#8217;s stock slid after a Wall Street analyst warned of continued softness in the ad market, impacting the company&#8217;s earnings through the end of the year, according to a Yahoo Finance <a href="https://finance.yahoo.com/news/roku-stock-falls-8-after-wall-street-analyst-warns-of-more-ad-market-softness-194058985.html?guccounter=1">report</a>.
Photo by WHYFRAME on Shutterstock
Prepare for the day's trading <a href="PreMarket Movers &amp; News">with top premarket movers and news</a> by Benzinga.
<div style="font-family: 'Lato', sans-serif">
<div>
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by Benzinga Neuro, Edited by 
 <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Shivdeep Dhaliwal</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>
</div>

NFLX

ROKU

Tesla, Netflix, American Airlines, Nvidia, Roku: Why These 5 Stocks Are Trending Today?

Nvidia Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) remains engaged in multiple endeavors to boost its revenue stream as the U.S. intensifies its artificial intelligence&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/10/35286394/nvidia-stock-is-falling-tuesday-heres-why" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">technology embargo on China</a>, a significant chip designer market. Nvidia CEO Jensen Huang is in Taiwan for a week.
The critical&nbsp;Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) supplier expanded its partnership with another iPhone Maker partner,&nbsp;Hon Hai Precision Industry Co Ltd&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/hnhpf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">HNHPF</a>), operating as Foxconn to develop a new class of data centers powering a wide range of applications, including the development of AI-powered electric vehicle&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/10/g35300815/nvidia-partners-with-foxconn-to-build-factories-and-systems-for-the-ai-industrial-revolution" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">and robotics platforms</a>.
As per a fireside chat with Nvidia founder and CEO Jensen Huang and Foxconn Chairman and CEO Young Liu at Hon Hai Tech Day in Taipei, the collaboration starts with creating AI factories.
Meanwhile, Wall Street analysts estimate near-term to long-term impact on Nvidia due to the additional U.S. embargo on China.
KeyBanc&nbsp;analyst John Vinh sees this development as damaging long-term for NVDA, as it will ultimately be difficult to backfill China demand, which historically represents 20% - 25% of NVDA&#39;s data center revenues.&nbsp;
Assuming a 20% impact on his $101 billion data center estimate for FY25, this would potentially present a ~$20 billion headwind and negatively impact his $25.62 EPS estimate by ~$5.
Vinh reiterated an Overweight rating with a&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/quote/NVDA/analyst-ratings" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">price target of $750</a>.
Bernstein&nbsp;analyst Stacy A. Rasgon reiterated Outperform with a price target of $675.&nbsp;
The analyst acknowledges potential concerns about the Total Addressable Market (TAM) in China, exacerbated by the widening gap between legal sales limits in China and the rest of the world.&nbsp;
However, he remains confident in the substantial size of the long-term TAM, regardless of China&#39;s participation.
The analyst projects FY24 revenue and EPS of $53.48 billion (vs. consensus $54.71 billion) and EPS of $10.59 (vs. consensus $10.79). Rasgon estimates FY25 revenue and EPS of $69.06 billion (vs. consensus $82.3 billion) and EPS of $14.12 (vs. consensus $17.06).
Raymond James&nbsp;analyst Srini Pajjuri&#39;s recent conversations in Asia highlighted strong demand from U.S. hyperscalers, with visibility extending into 1H23.&nbsp;
As such, the analyst expects the near-term impact of new China restrictions to be modest and believes that any EPS impact on CY24 estimates will be less than 10% (The 20-25% China exposure includes other components such as Networking).&nbsp;
The analyst believes the pullback offers an excellent opportunity to add to positions given AI and ML dominance, Software and Services opportunities, and secular growth in the Gaming and Auto markets.
The analyst projects FY24 revenue and EPS of $54.45 billion and EPS of $10.88. Pajjuri estimates FY25 revenue and EPS of $81.16 billion and EPS of $17.25. Pajjuri has a Strong Buy rating on the stock.&nbsp;
Price Action:&nbsp;NVDA shares traded lower by 3.41% at $424.39 premarket on the last check Wednesday.

Price Target

Reiteration

Analyst Ratings

Trading Ideas

What's Going On With Nvidia Stock Wednesday?

Nvidia Corp&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) continues to top headlines with artificial intelligence endeavors as the U.S. prepares to intensify its semiconductor technology&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/10/35260107/whats-going-on-with-nvidia-stock-monday" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">embargo on China</a>.
The U.S. government divulged plans to halt shipments to China of more advanced AI chips designed by Nvidia and others, citing military threats.
The fresh sanctions extend across several countries, including Iran and Russia, and blacklist Chinese chip designers Moore Thread and Biren, Reuters reports.
The latest embargo will hit Nvidia&#39;s A800 and H800 chips, tailor-made by the chip designer to comply with China&#39;s previous sanctions due to a change in chip parameters.
Interestingly, the rules will exempt most consumer chips used in laptops, smartphones, and gaming, with some subject to licensing by U.S. officials.
Meanwhile, Taiwanese testing companies and probe card providers plan in advance to beat the U.S.&#39;s stricter restrictions on Chinese chipmakers, and Nvidia&#39;s downgraded AI H800 processors, Digitimes&nbsp;<a class="editor-rtfLink" href="https://www.digitimes.com/news/a20231016PD229/ai-chips-china-osat-chinese-chipmakers-nvidia-h800-gpu-packaging-and-testing-taiwan-osat-us-chip-restrictions.html" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reports</a>.
Nvidia CEO Jensen Huang is in Taiwan for a week, and his only public engagement for October 18 is&nbsp;Hon Hai Tech Day (HHTD).
Huang will offer a blueprint vision for Nvidia and Foxconn&#39;s partnership in AI, electric vehicles, and other industries along&nbsp;with Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)&nbsp;partner&nbsp;Hon Hai Precision Industry Co Ltd&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/hnhpf#OTC">HNHPF</a>)&nbsp;Foxconn&nbsp;chairman Young Liu, reports&nbsp;<a class="editor-rtfLink" href="https://www.digitimes.com/news/a20231017PD211/jensen-huang-nvidia-foxconn-hon-hai.html" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">indicate</a>.
Foxconn&#39;s collaboration with Nvidia dates back several years, with Foxconn being a part of the supply chain for servers, cabinets, modules, substrates, and motherboards that use Nvidia&#39;s latest AI GPUs.
Huang&#39;s tour will also include meetings with key supplier&nbsp;Taiwan Semiconductor Manufacturing Company Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>) and other local Taiwanese partners like&nbsp;Quanta Computer&nbsp;and&nbsp;Gigabyte Technology,&nbsp;focused on supplying Nvidia&#39;s popular AI GPUs and TSMC&#39;s capacity support for CoWoS packaging manufacturing capacity.
Foxconn subsidiary Ingrasys is currently experiencing a massive demand surge. The factory workers work overtime to produce high-end servers equipped with the Nvidia H100 chip.
Price Action:&nbsp;NVDA shares traded lower by 6.08% at $432.96 on the last check Tuesday.

Management

Movers

Nvidia Stock Is Falling Tuesday - Here's Why

Foxconn forecasts drop in Q1 revenue as Q4 sales top estimates

Foxconn reaffirms guidance for Q1 revenue declining

Foxconn reaffirms guidance for Q1 revenue decline

Foxconn's February revenue tumbles, continues to see decline in Q1

Apple supplier Foxconn sees growth in 2024 on AI boost, Q4 profit soars 33%

Major U.S. technology companies, including Nvidia (NVDA), Amazon (AMZN), Alphabet (GOOGL), and Microsoft (MSFT), are aiming to reduce reliance on C...

U.S. Tech Giants Eye AI Hardware Shift to Mexico

Apple supplier Foxconn expects Q2 growth after Q1 revenue falls

Apple now assembles 1 in 7 iPhones in India, accelerating push beyond China - report

Apple manufacturing partner to consider rotating CEOs: report

Hon Hai Precision Industry Co., Ltd. (HNHPF) has released an update. Hon Hai Precision Industry Co., Ltd. announces the release of its second serie...

Hon Hai Precision Debuts New Corporate Bonds

AMZN

HNHAF

MSFT

Press Releases

Lordstown Motors Announces Strategic Restructuring Process

Lordstown Receives Approval of First Day Motions

Commodities

EV Tech OEM Indigo Technologies Closes Strategic Investment From Foxconn To Accelerate Its Smart EVs Solutions for Sustainable Ride Hail, Delivery & More