Amid a sharp decline in global technology stock quotes, Foxconn Chairman Young Liu stated that the thesis of an artificial intelligence "bubble" is unfounded, and demand for AI infrastructure still significantly exceeds supply. His remarks came on October 30 on the sidelines of Foxconn's annual technology event in Taipei, as the market experienced one of the heaviest AI sector sell-offs in recent times.
The "Bubble" Is an Unfounded Claim
"The claim that the artificial intelligence industry is in a bubble is unfounded. Financial professionals may worry about stock market fluctuations, but those of us working in the artificial intelligence industry do not," Young Liu told reporters. According to him, Foxconn is not merely an assembly or "shipping" unit, but a company capable of manufacturing advanced equipment, which is why industry representatives see the picture differently than stock market participants.
Stock Market Crash
The statements came against the backdrop of technology stock instability driven by investor concerns over AI profitability and disappointing results from several companies. According to Bloomberg, on October 29, Alphabet shares—Google’s parent company—dropped 12.6% in regular trading, the largest single-day drop in the company's history, wiping out approximately $500 billion in market capitalization. Investors were alarmed by data regarding potential AI pressure on Google's search engine optimization advertising operations. On the same day, Intel shares plummeted 23% in after-hours trading, Amazon shares declined 7.3%, and the broader sell-off dragged the Nasdaq Composite down by 1.4%. According to Reuters, China's STAR50 index, which includes leading AI and semiconductor companies, fell by about 40% compared to its July peak, costing the market roughly $480 billion in capitalization.
Component Deficit as a Signal of Excess Demand
At the same time, the AI industry is facing a shortage of components and resources—ranging from memory chips and printed circuit boards to electrical infrastructure and laser equipment. "In my view, current supply bottlenecks are fundamentally a positive development because demand significantly exceeds production capacity," Young Liu commented. Anticipating double-digit revenue growth in 2027, Foxconn is expanding production of components and complete server systems for data centers in Taiwan (China), Vietnam, Mexico, and the United States, where the company already operates six facilities in Houston, Texas, and is partnering with the Taiwan (China) government and industry associations to build a local supply chain in the Texas technology park.
Meeting with Sam Altman and "Embodied AI"
Also on October 30, Young Liu met with OpenAI CEO Sam Altman and stated that cooperation between the parties regarding AI data center equipment is progressing smoothly, with more concrete plans to be announced soon. Simultaneously, Beijing is actively investing in robotics, or "embodied artificial intelligence," viewing it as a key factor for the widespread adoption of the technology: humanoid robots and robot dogs are already popular in the entertainment industry, but they have not yet found true application in everyday domestic use.
