Plus: Foxconn to ramp up global AI server production. And Tencent Holdings’ AI spending ends its earnings growth streak. Julie Chang hosts.
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[00:00:01] Here's your afternoon TNB Tech Minute for Wednesday, August 12. I'm Julie Chang for The Wall Street Journal. We exclusively report that Bank of America plans to inject $250 billion into an infrastructure push that aims to boost U.S. investments in data centers, energy and critical minerals. The second largest bank in the nation by assets said the initiative would involve lending and investing as well as capital markets, banking and advisory work.
[00:00:29] Bank of America's initiative will run from the start of this year into the middle of next. The move marks the latest big bank initiative to enhance national competitiveness, following similar campaigns by rivals Morgan Stanley and JPMorgan Chase. The endeavors come against a backdrop of an administration that has exerted extraordinary pressure on American companies.
[00:00:51] Foxconn's second-quarter net profit beat expectations, rising 35% to $1.86 billion, and the company's revenue jumped 41% from a year earlier. Server-related sales saw the strongest growth, accounting for more than half of total revenue. Once mainly associated with manufacturing Apple's devices, the company now derives significant revenue from building AI servers for industry leaders such as NVIDIA.
[00:01:18] Foxconn said it expects its AI server rack shipments to grow in the third quarter. And Tencent Holdings' second-quarter net profit rose 0.7% to $8.3 billion, missing market expectations and ending its double-digit earnings growth streak since 2023. Revenue climbed 11%, while its capital expenditure more than doubled from a year earlier.
[00:01:43] The profit slowdown for the Shenzhen-based company, China's largest by market capitalization, comes as it more than doubles its AI spending this year, targeting both foundational models and AI agents. And that's it for your TNB Tech Minute. We'll have another Quick Tech Update in the morning. The experience of trafficking we put in the gas tanks in digital networks. The dean of the