With about 75% of S&P 500 companies having already reported their Q2 results, earnings season is wrapping up. But don’t close the book just yet—Walmart and Cisco are next.

The S&P 500 inched up 0.1% and the Dow climbed 0.4%, while the Nasdaq took a tiny setback, dropping 0.2%. 

Consumer prices stayed pretty chill in July, with inflation dipping below 3% for the first time since 2021. These numbers might just push us closer to that long-awaited rate cut.

As you can imagine, traders are already placing bets, with nearly half banking on a 50 basis point slash. 

Meanwhile, the big headline of the day was Kellanova’s stock skyrocketing 7% after Mars decided to snap up the company for $36 billion making it the largest corporate takeover in the packaged food industry since Mars bought Wrigley for $23 billion back in 2008.

Over in the fashion corner, Victoria’s Secret got a 15% lift after announcing Hillary Super (yes, that’s her real name) as the new CEO. 

Apple’s “Go-To Assembler” Foxconn Drives Record Stock Gain With AI Server Bet

Foxconn, the name behind your iPhone’s assembly, just delivered some noteworthy news. The company reported a 6% increase in second-quarter net profit, and while smartphones are still in the mix, it’s the AI servers that are getting all the attention.

To break it down: Foxconn raked in NT$35.05 billion (that’s about $1.08 billion for those of us who don’t have a currency converter on hand), beating analysts' expectations by a comfortable margin. Their revenue hit a record NT$1.551 trillion, reflecting a 19% year-over-year increase thanks to a 60% surge in AI server sales, which has positioned Foxconn as the new sheriff in the AI infrastructure town.

James Wu, Foxconn’s VP, couldn’t help but spotlight this success during the earnings call, noting how AI servers blew past expectations and gave their revenue a serious boost. But Foxconn isn’t just riding the AI wave—they’re doubling down. With Nvidia’s GB200 chip in hand, Foxconn is gearing up to roll out products featuring this powerhouse in the fourth quarter. Expect the trickle of products to turn into a full-blown flood by 2025.

(Source: Barron’s)

And investors? Oh, they’re loving it. Foxconn’s shares popped 2.5% after the announcement, bringing its year-to-date gains to 78%. To put that into perspective, Taiwan’s TAIEX index has only managed a 23% climb. Clearly, AI is the gift that keeps on giving, and Foxconn is more than happy to take the credit.

While the rest of the tech world is fretting over flat smartphone sales and what the next iPhone might bring, Foxconn is making a play for the future. AI servers now account for more than 40% of its server business, and the company is aiming even higher. Wu boldly predicted that AI servers will soon become Foxconn’s next trillion-dollar revenue product—in Taiwan dollars, of course.

But don’t think for a second that Foxconn is putting all its eggs in the AI basket. The company is also eyeing the electric vehicle (EV) market, hoping to replicate its success with iPhones. Talks with two Japanese car makers are in the final stages, and if all goes well, Foxconn might soon be assembling your next electric ride.

In the meantime, Foxconn expects the AI-fueled growth to continue into the fourth quarter, with even more demand as companies across the globe scramble to keep up with the AI craze. And who knows? By the time 2025 rolls around, Foxconn might just be the king of AI servers, leaving its competition scrambling to catch up. Apple, if things keep trending in this direction, you might need to start looking for another iPhone maker.

Stock.News has positions in Apple.