Foxconn is intensifying its strategic positioning in the AI industry, having successfully delivered its ‘all-optical CPO (Co-Packaged Optics) switch cabinets’ to its key client, NVIDIA, ahead of the anticipated timeline. The company has notably elevated its shipment objectives, aiming for a cumulative total exceeding 50,000 units from 2026 to 2027. These cabinets, manufactured at Foxconn's Vietnam facility, are currently facing a constrained supply situation. The gross profit margin for CPO switches has witnessed a twofold increase, positioning them as Foxconn's second significant growth driver, following AI servers. This development is anticipated to catalyze a structural enhancement in the group's overall profitability. CPO technology represents a breakthrough by directly integrating optical modules with chips, thereby overcoming the constraints of traditional electrical signal transmission. As NVIDIA's exclusive contract manufacturer for CPO products, Foxconn stands to benefit directly from any uptick in NVIDIA's CPO shipments, with the actual progress already surpassing initial projections. However, it is important to note that market risks persist, and investors are advised to exercise caution.