What's Goin On With Apple Stock Wednesday?

Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group subsidiary Foxconn Industrial Internet (FII) will exclusively supply Apple Inc AAPL with servers made in Vietnam for training and testing artificial intelligence (AI) services.

Foxconn is Apple's primary assembler of iPhones and a significant supplier of servers used in Apple's data centers, accounting for around 43% of the global server market, SCMP reports.

Also Read: Apple's On A AI Hiring Spree

FII has also supplied servers to other significant players like Amazon.Com Inc AMZN Amazon Web Services, ChatGPT parent OpenAI, and Nvidia Corp NVDA.

Apple has reportedly been working on its own ChatGPT counterpart, Apple GPT.

During Apple's recent quarterly earnings call, CEO Tim Cook confirmed the company's research efforts in various AI technologies.

FII's deal aligns with Foxconn's chairman and CEO Liu Young-way's optimism about demand for AI servers.

Foxconn has been actively expanding its manufacturing capabilities outside China, with investments in India for smartphone enclosures and semiconductor equipment projects.

In Vietnam, Foxconn has established manufacturing facilities for iPads and AirPods and has diversified its business ventures, including components for electric vehicles.

Apple's supplier list for 2022 reveals that Vietnam houses at least 25 factories providing various manufacturing services for the tech giant.

Beyond its association with Apple, Foxconn continues to invest in various projects and supply chain diversification efforts in Vietnam, including initiatives related to electric vehicle components.

AAPL Price Action: AAPL shares traded lower by 0.56% at $178.80 on the last check Wednesday.

Photo via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.