(Yicai) Aug. 9 -- Shares of Foxconn Industrial Internet, which has started to mass-produce Nvidia’s H100 and H800 high-performance artificial intelligence servers, slumped after the unit of Hon Hai Precision Industry reported an 8 percent decline in revenue for the first half.

The shares [SHA: 601138] ended 8 percent lower in Shanghai at CNY22.25 (USD3.10), the day’s low, but the stock has still more than doubled in value so far this year on the back of the AI boom triggered by OpenAI's ChatGPT.

Revenue was CNY206.8 billion (USD28.7 billion) in the six months ended June 30, the Shenzhen-based company said in an interim earnings report yesterday, without giving a reason for the decline. Net profit rose 4 percent to CNY7.2 billion (USD1 billion), thanks to a strong second quarter.

Foxconn Industrial Internet, also known as Fii, said it optimized its product structure to bolster profitability amid strong demand for AI computing power.

Apart from turning out high-performance AI servers for Nvidia, Fii has begun to ship cloud game servers in March, it noted. The firm will also continue to raise investment in developing AI servers to seize new opportunities, it said.

In the first half, Fii’s spending on research and development fell 3 percent to CNY4.9 billion. As of last year, the firm has poured at least CNY10 billion (USD1.4 billion) into R&D for three straight years. It employs more than 32,000 R&D technicians.

Editor: Emmi Laine