--- title: "Foxconn Rejects AI 'Bubble' Thesis Amid Alphabet and Intel Stock Plunge" description: "Amid the stock market plunge of Alphabet and Intel, Foxconn Chairman Young Liu rejected the AI \"bubble\" thesis and forecasted double-digit revenue growth in 2027." date: 2026-10-31T13:59:22.704Z lang: en url: https://xab.info/en/posts/foxconn-rejects-ai-bubble-thesis tags: [foxconn, artificial-intelligence, ai-bubble, tech-stocks, openai, robotics] author: "Alexander Buran" publisher: "XAB.info" --- # Foxconn Rejects AI 'Bubble' Thesis Amid Alphabet and Intel Stock Plunge ![Humanoid robot with a black helmet and white body against the background of a Foxconn office and staff](https://xab.info/media/2026/10/31/foxconn-otklonil-tezu-o-puzyre-v-ii/foxconn-otklonil-tezu-o-puzyre-v-ii-1.webp) ## Key Points - Young Liu called the AI "bubble" thesis unfounded and pointed out that demand exceeds supply. - On October 29, Alphabet shares fell by 12.6% (~$500B), Intel by 23% in after-hours trading, Amazon by 7.3%; the Nasdaq Composite dropped by 1.4%. - China's STAR50 index lost about 40% from its July peak (~$480B in market cap). - Foxconn expects double-digit revenue growth in 2027 and is expanding manufacturing in Taiwan (China), Vietnam, Mexico, and the US; Young Liu met with Sam Altman on October 30. 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. ## Accounts differ ### Is the AI industry a "bubble"? - **Foxconn Chairman Young Liu:** The AI industry is not in a bubble; the overheating thesis is unfounded, and component supply difficulties indicate that demand exceeds production capacity. ([vietnam.vn](https://www.vietnam.vn/ru/noi-lo-bong-bong-ai-khien-hang-tram-ty-usd-boc-hoi)) - **Investors and analysts (including Peter Schiff):** AI-related stocks are overvalued and form a bubble; the recent drop in quotes reflects a broader decline in speculative enthusiasm rather than a temporary correction. ([news.bitcoin.com](https://news.bitcoin.com/ru/prezentatsiya-spacex-i-zapusk-kimi-k3-usilivayut-opaseniya-po-povodu-puzyrya-na-rynke-aktsiy-kompaniy-zanimayushchikhsya-iskusstvennym-intellektom/)) *Where they agree:* A sharp decline in tech and AI stock quotes and increased stock market volatility is acknowledged by both sides. ## Fact-Check & Sources - [Опасения по поводу «пузыря» искусственного интеллекта привели к тому, что сотни миллиардов долларов испарились.](https://www.vietnam.vn/ru/noi-lo-bong-bong-ai-khien-hang-tram-ty-usd-boc-hoi) - Primary source: Young Liu's statements, Alphabet/Intel/Amazon/Nasdaq quotes, STAR50 data, Foxconn expansion plans, meeting with Altman. - [Презентация SpaceX и запуск Kimi K3 усиливают опасения по поводу «пузыря» на рынке акций компаний ...](https://news.bitcoin.com/ru/prezentatsiya-spacex-i-zapusk-kimi-k3-usilivayut-opaseniya-po-povodu-puzyrya-na-rynke-aktsiy-kompaniy-zanimayushchikhsya-iskusstvennym-intellektom/) - Context: Skeptics' position (Peter Schiff) on AI stock overvaluation; the article is over a month old, some data may be outdated—used only as a party's position. - [Опасения по поводу искусственного интеллекта оправданы, но компаниям, занимающимся ИИ, следует ...](https://armenpress.am/ru/article/1260529) - Подтверждено по источнику armenpress.am - [Индекс Nikkei резко снизился на фоне опасений по поводу секторов искусственного интеллекта и ...](https://www3.nhk.or.jp/nhkworld/ru/news/20261015_RS21/) - Confirms broad volatility in Asian markets within the AI and semiconductor sector in October 2026. ## FAQ ### What did the Foxconn Chairman state about the AI "bubble"? Young Liu called the claim of a bubble in the AI industry unfounded, pointing out that market fluctuation concerns are understandable for financiers, but not for those working in the industry. ### What market losses were mentioned in the article? Alphabet shares fell by 12.6% (around $500 billion in capitalization), Intel by 23% in after-hours trading, Amazon by 7.3%; China's STAR50 index lost about 40% from its July peak (around $480 billion). ### What expansion plans did Foxconn announce? The company is expanding component and server system production for AI data centers in Taiwan (China), Vietnam, Mexico, and the US (six facilities in Houston) and expects double-digit revenue growth in 2027.