Nvidia (NVDA) shares moved higher on Monday, buoyed by a record monthly revenue report from key manufacturing partner Foxconn and a fresh price-target increase from BNP Paribas. The gains underscore continued investor confidence in the AI infrastructure buildout.
Foxconn's Record Revenue Points to AI Demand
Foxconn, a major assembler of Apple products and a critical producer of Nvidia-based AI servers, reported September revenue of $36.5 billion (NT$1.16 trillion). That figure rose 25.7% from August and 38.4% year over year, marking the company's first month above NT$1 trillion and surpassing its previous record of NT$946.5 billion set in July.
For the July–September quarter, Foxconn posted revenue of NT$3.03 trillion, beating the LSEG SmartEstimate of NT$2.83 trillion. The strong results are closely watched by Nvidia investors because Foxconn builds and integrates AI server systems based on Nvidia's accelerated-computing platforms, including the GB200 and GB300 NVL72 racks. These systems incorporate power delivery, liquid cooling, mechanical systems, and networking integration—making them far more complex than conventional servers.
The latest figures provide a fresh indication of activity across the AI supply chain as companies continue investing in computing capacity. Foxconn's partnership with Nvidia, expanded in October 2023 to develop AI factories, has become increasingly important as demand shifts from individual chips to complete systems that combine computing, networking, power, and cooling.
BNP Paribas Raises Nvidia Price Target
Nvidia also received support from BNP Paribas, which reiterated its view of the chipmaker as its preferred semiconductor stock. The brokerage raised its price target to $345 from $285, citing Nvidia's broad portfolio of AI hardware, CUDA software, and networking products. BNP Paribas expects Nvidia to maintain a leading position in AI computing as workloads increasingly shift toward inference—the process of running AI models after training—and to sustain gross margins above 70% despite rising competition from custom chips.
The brokerage's view highlights the importance of Nvidia's broader AI platform rather than its role as a chip supplier alone. Its hardware, software, and networking products remain central to its competitive position, according to BNP Paribas.
Bernstein Maintains Positive Outlook
Bernstein also maintained its outperform rating on Nvidia with a $400 price target, saying the data center opportunity remains substantial. The firm reinforced the investment case around Nvidia's role in AI infrastructure, noting that demand for increasingly complex data center systems continues to drive investment across the semiconductor and server supply chain.
Foxconn's record September revenue provides another data point for investors assessing the strength of that demand. The monthly revenue increase also points to continued activity across both AI infrastructure and consumer electronics markets.
This article is for informational purposes only and does not constitute financial advice.
