(Yicai Global) April 20 -- Shares in Foxconn Industrial Internet rebounded today after the Chinese smart manufacturing and industrial internet giant said that rumors that it has lost a major order from US chipmaking giant Nvidia are not true.

Foxconn’s share price [SHA:601138] was trading up 8.9 percent at CNY18.81 (USD2.60) as of 11.30 a.m. today. Yesterday it sank by the exchange-imposed limit of 10 percent after the rumors broke.

Foxconn’s relationships with its clients are all normal and orders are stable, the unit of the world’s largest contract electronics maker Hon Hai Precision Industry said yesterday.

Foxconn is unable to deliver one million H800 graphics processing units on time due to supply chain issues, and as a result Nvidia has cancelled its order, according to online rumors. This is the biggest order that Foxconn has lost since it was set up and could cost it CNY10 billion (USD1.5 billion), they added.

H800 is one of Santa Clara-based Nvidia’s most advanced GPUs and is in high demand at the moment as it can provide the huge computing power needed to run artificial intelligence-generated content models.

Foxconn, which makes communication and mobile network devices and offers cloud computing and industrial internet services, has been reaping the benefits from the rapid growth of the digital economy and increased demand for greater computing power.

The Shenzhen-based company’s net profit advanced 0.3 percent last year from the year before to CNY20.1 billion (USD2.9 billion), while revenue exceeded CNY500 billion (USD72.6 billion) for the first time to reach CNY511.9 billion, according to its latest earnings report.

Its cloud computing segment generated CNY212.4 billion (USD30.8 billion) in revenue last year, a jump of 19.5 percent from the year before and topping CNY200 billion for the first time, as the metaverse and ChatGPT drive up computing power needs.

Editor: Kim Taylor