AI Demand Still Looks Strong

Foxconn just gave another pretty strong signal that AI infrastructure demand is still not slowing down. They said they still expect strong full year revenue growth and AI demand should remain one of the main drivers through 2026. Q2 profit was up around 35% to $1.86B and came above expectations. For me the interesting part is Foxconn is one of the biggest manufacturers behind Nvidia AI servers. So when they are still seeing strong demand, it suggest the AI buildout is not only hype from big tech presentations. Companies are still actually ordering servers, GPUs, networking equipment and building data centres. Foxconn is also expanding AI server manufacturing in Texas and Mexico, which tells me they are expecting this demand to stay for some time, not only few quarters. Of course valuation is another question and many AI stocks already moved a lot. But from the demand side, I don’t see much evidence yet that the AI infrastructure cycle is slowing. I would keep watching $NVDA, $SMCI, $DELL and $ANET. Do you guys think AI infrastructure still has another 1–2 years of strong growth, or we are already close to peak spending? Source: https://www.reuters.com/world/asia-pacifi…