A strong breakthrough

The artificial intelligence (AI) craze is taking the technology and stock markets by storm globally.

FPT Corporation (FPT) shares have recently increased dramatically, making FPT the largest private enterprise on the stock exchange.

After a series of strong increases, by the end of the trading session on July 1, FPT shares of FPT Corporation, chaired by Mr. Truong Gia Binh, were at VND128,600/share. Cooperating with leading global companies such as Nvidia in the AI ​​wave, FPT has almost increased sharply following the dizzying increase of Nvidia shares, reaching VND136,100/share at one point (on June 21). Previously, for the first time in history, in the session on June 18, Nvidia surpassed Microsoft and Apple to become the company with the largest capitalization in the world.

At the current price, FPT has become the third largest listed company on the stock exchange in terms of capitalization, behind only two banking giants, Vietcombank and BIDV. FPT has surpassed Hoa Phat Group (HPG) of billionaire Tran Dinh Long to become the number 1 private corporation in Vietnam, with capitalization as of July 1 reaching nearly 188 trillion VND (about 7.4 billion USD), compared to nearly 181 trillion VND of HPG.

Equitized more than two decades ago, FPT was then FPT Technology Investment Development Joint Stock Company with an initial capital of VND20 billion (in 2002). By the end of the first quarter of 2024, the owner's contributed capital was nearly VND13 trillion.

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Mr. Truong Gia Binh, Chairman of FPT Corporation. Photo: Nam Khanh

After equitization, FPT grew quite rapidly but then slowed down for more than a decade, from 2007 to 2019, before entering a period of explosive growth in the past few years.

From 2007 to 2019, FPT was still considered an empire in the Vietnamese software industry. However, during those 12 years, FPT shares almost did not increase compared to the first sessions of listing on the stock exchange at the adjusted price. Meanwhile, a series of other businesses had spectacular breakthroughs such as Vinamilk (VNM), Vingroup (VIC)...

In April 2019, when Vingroup's capitalization reached VND370 trillion, FPT's was less than VND29 trillion. Meanwhile, Zalo's owner (VNG) had its shares bought by Temasek (Singapore) at a time with a valuation of more than USD2 billion. FPT Corporation's rival stock, CMC Technology Group Corporation (CMG), has risen strongly.

However, over the past 4 years, FPT has made an impressive breakthrough and surpassed billionaire Pham Nhat Vuong's Vingroup in terms of capitalization.

Expectations on AI and semiconductor trends

In the past, FPT was a stock that brought wealth to many people in the early days of the stock market. Since 2006, Mr. Truong Gia Binh has become the richest person on the stock market, with assets at that time worth 2,400 billion VND.

After a decade of stagnation, from the second half of 2020, FPT shares entered a very strong price increase, from below 20,000 VND to 60,000 VND/share (adjusted price) in early 2022.

By 2023, FPT shares once again caused a fever, from a price of 60,000 VND, they suddenly climbed to a historical peak of around 130,000 VND/share as it is now. Since the beginning of 2024, FPT shares have set new peaks dozens of times.

FPT has been highly anticipated recently. It is one of the software and semiconductor technology companies that benefited after the US and Vietnam upgraded their comprehensive strategic relationship in September 2023. The US is promoting the re-establishment of high-tech supply chains such as the semiconductor industry to friendly countries.

Also in the past 1-2 years, the Vietnamese semiconductor industry has become very hot with a series of businesses such as Amkor Technology, Synopsys, Marvell, SK... announcing investments in semiconductor projects in Vietnam.

FPT Semiconductor has signed a strategic cooperation agreement with Silvaco Company (USA) to develop semiconductor human resources and business development in this field.

The question is whether the future prospects of FPT shares and the global AI fever will continue to have a positive impact on Mr. Truong Gia Binh's business?

Some experts recently predicted that the acceleration of the US technology giant Nvidia will not stop, the capitalization from the current record high of 3,300 billion USD could reach 10,000 billion USD. In Vietnam, FPT shares are also not outside the global AI fever as this enterprise is a partner of Nvidia.

According to MBS Securities, by joining hands with the giant Nvidia, FPT will have the motivation to increase long-term revenue when generative AI is becoming a new trend in the information technology industry.

FPT has recently stepped up investment in advanced data centers, also known as "AI factories". In addition, FPT has also built a roadmap for developing semiconductor human resources.

In a recent meeting with Nvidia Chairman Jensen Huang, Mr. Truong Gia Binh said that the semiconductor and AI sectors are the key directions in the coming time. FPT hopes to work with Nvidia to turn Vietnam into a stronghold to attract AI and semiconductor talent from around the world.

In 2023, FPT marked an important milestone when it reached the revenue mark of 1 billion USD from information technology services in foreign markets for the first time. The group plans to reach the target of 5 billion USD in this sector by 2030.

FPT's cloud computing segment is highly regarded. The automotive software outsourcing segment is also expected to make a breakthrough. FPT established FPT Automotive with 4,000 engineers and set a revenue target of 1 billion USD by 2030. Last April, FPT became a technology supplier for Vingroup and VinFast electric cars.

In 2024, FPT sets a revenue target of VND 61,850 billion (equivalent to about USD 2.5 billion) and pre-tax profit of VND 10,875 billion, an increase of 18% compared to 2023.

Closing the year of the Cat, billionaire Pham Nhat Vuong is number 1, Mr. Truong Gia Binh breaks through. Vietnamese billionaires saw their assets fluctuate quite strongly but their rankings did not change much in the year of the Cat. Billionaire Pham Nhat Vuong firmly holds the throne. Mr. Tran Dinh Long breaks through. Mr. Truong Gia Binh enters the top 10.