Taiwan Stock Market King Breaks Record Again! Wistron "In the 7s" Steady at High Level, Logic Behind Reaching 7,715 During Trading

Foxconn (5274) once again刷新 Taiwan Stock Exchange’s single-stock record today, surging to a high of 7,715 yuan during trading. The closing price was 7,550 yuan, a daily increase of 6.34%, with over 570 contracts traded throughout the day. After two consecutive days of gains, Foxconn not only remains firmly above all moving averages but also approaches a market capitalization of 290 billion yuan, making it the most outstanding winner in Taiwan stocks this year.

This strong rally is not a fleeting phenomenon. A closer look reveals that the driving momentum behind the stock price increase is quite solid—stemming from the market’s continued optimism about the demand for AI servers and data centers in 2026. Investors are highly confident in the next-generation requirements for remote server management chips (BMC). The company’s recent excellent November revenue performance has led to a second upward revision of its Q4 outlook, with order visibility extending clearly into the second quarter of next year. All these factors provide strong fundamental support for the stock price.

Why can Foxconn stand firm at high levels? Starting from its moat

The key lies in Foxconn’s near-monopoly position in the global BMC field. As a leader in remote server management chips, Foxconn benefits from the increasing demand for higher specifications and quantities of chips in next-generation AI server platforms, expecting to reach new operational heights in 2026. Especially with the upcoming mass production of the new AST2700 chip next year, which adopts more advanced processes and offers higher computing and security performance, it is anticipated to boost gross profit margins.

Year-end accounting season acts as an additional catalyst. With the large-scale production of NVIDIA’s Blackwell series architecture and the upcoming release of advanced cabinet designs like GB300, the demand for remote management chips in individual server systems will significantly increase. Domestic and foreign institutional investors and foreign funds are aggressively buying in, creating strong year-end capital chasing. This momentum is what drove the stock price to break through 7,715 yuan during today’s trading.

What happens after reaching high levels? Analysts point out variables to watch

Despite the optimistic outlook, there are risks lurking at high levels. First, the price-to-earnings ratio is already relatively high, indicating that the market has priced in most of the growth expectations in advance. Whether the stock can continue to reach new highs depends critically on whether the actual shipment pace of AI servers in 2026 meets expectations and whether global cloud service providers’ capital expenditures slow down. In the short term, year-end accounting closing or profit-taking by investors may trigger significant volatility.

However, the long-term logic remains unchanged. As long as the structural growth trend of the AI industry continues, Foxconn’s strong moat can provide robust support. Currently, 16 analysts have a consensus of “Buy” ratings, with average target prices raised above 7,300 yuan. Some foreign institutions, such as Nomura, even expect the stock price to challenge 8,000 yuan. This demonstrates that, despite the current high position, institutional investors still see considerable long-term potential for Foxconn.