October 30, 2026, (Inside AI) — Foxconn Chairman Young Liu on Friday rejected the idea that the artificial intelligence boom is inflating into a bubble. He said demand for the company's AI server products is visible and strong. He also forecast double-digit sales growth in 2027.
Foxconn is the world's largest contract electronics manufacturer and a key supplier of servers to Nvidia. Its order book gives it an early view of how much AI infrastructure customers plan to buy. Liu's remarks came during the company's quarterly results briefing in Taipei.
"The argument that the AI industry is bubbling doesn't hold ..." Liu said, according to sources.
His confidence matters because Foxconn sits at the base of the AI supply chain. Before a data center operator can train a model, it needs servers assembled and shipped. Foxconn's factories in Mexico and Taiwan build many of those systems. When Liu speaks about demand, he is describing orders already placed, not forecasts pulled from thin air.
Why Nvidia's Shadow Matters
Nvidia's data center revenue has climbed for several consecutive quarters. That growth has lifted Foxconn's own AI server business. The company has said AI servers now account for a growing share of its total revenue. That shift has made Foxconn's results a proxy for the wider AI hardware cycle.
Liu's dismissal of bubble talk echoes comments from Nvidia CEO Jensen Huang, who has repeatedly said demand exceeds supply. But not everyone agrees. Some investors have questioned whether spending on AI data centers can continue at its current pace. They point to the gap between infrastructure investment and revenue generated by AI services.
Foxconn's forecast of double-digit growth in 2027 suggests the company expects that gap to close or at least persist without a sharp pullback. That is a bet on sustained capital expenditure from cloud providers and enterprises.
The company's own numbers support a cautious optimism. Foxconn reported steady growth in its AI server segment in recent quarters. It has expanded capacity in Mexico to serve North American customers. It has also deepened ties with Nvidia on next-generation rack systems.
Still, a single supplier's outlook does not settle the bubble debate. Foxconn's orders reflect commitments already made. If customers slow spending later, the impact would show up in future quarters. Liu's 2027 forecast assumes those commitments hold.
Analysts have noted that AI server margins are thinner than Foxconn's consumer electronics business. That means revenue growth does not automatically translate into proportional profit growth. The company has not disclosed specific margin figures for its AI server line.
For now, Liu's message is clear. The demand is real, and Foxconn plans to meet it. Whether the broader market shares that confidence will become clearer as more suppliers report results in the coming weeks.
