Billionaire Foxconn’s Eight-Year Stock Target Finally Comes True

(Bloomberg) — Terry Gou, the billionaire founder of iPhone maker Foxconn Technology Group, has finally achieved a goal that has eluded him for nearly eight years.

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Shares of the group’s flagship company, Hon Hai Precision Industry Co., closed on Monday at NT$200 (US$6.18), a level Gou had promised to reach in 2016. Taipei-listed shares rose more than 90% this year due to investor enthusiasm for artificial intelligence servers. and potential for Apple Inc.’s latest products.

Although Gou stepped down as chairman of Hon Hai in 2019 after unsuccessfully seeking the presidency of Taiwan, the price level represents a milestone for the company he founded 50 years ago.

Annual general meetings in recent years have featured shareholders asking Gou when his famous target would be achieved. This year’s Annual General Meeting demonstrated how the company has evolved with new fields, including AI servers, which it hopes will become its next NT$1 trillion business, and electric vehicles.

The strong performance this year by Hon Hai and its local technology peers, including Quanta Computer Inc., also highlights the transformation of the island’s contract manufacturers from low-margin commodity IT products to higher value-added offerings.

“The AI ​​wave lifts all boats,” said Xiadong Bao, fund manager at Edmond de Rothschild Asset Management. For Hon Hai, “the recovery is mainly driven by the rise of AI servers, greater expansion in AI-related networking equipment, and high expectations for a general recovery of servers and PCs.”

Hon Hai reported that revenue grew 22% in May, to a record for the month, and said it was likely to exceed expectations for the second quarter, a traditionally off-peak season, due to stronger-than-expected demand. by AI servers. The company is expected to release these results in August.

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