Jakub Porzyck | Nurphoto | Getty Images
Global semiconductor stocks rose on Monday after the deal with the electronics giant Foxconn announced record revenues in the fourth quartersuggesting that the AI boom has much more room to run.
Hon Hai Precision Industry, which does business internationally as Foxconn, said on Sunday statement that the company’s revenue in the fourth quarter totaled 2.1 trillion New Taiwan dollars ($63.9 billion), representing growth of 15% compared to the previous year.
Foxconn — which is a supplier for Apple — also set a record, posting the highest fourth-quarter revenue ever in the company’s history, according to a statement.
The company’s outsized revenue has been driven by growth in its cloud and networking products — which include AI servers like those designed by chipmakers Nvidia — and components and other product segments.
Computer products and smart consumer electronics — which include the iPhone and other smartphones — saw a “slight decline,” Foxconn said.
As a result, shares of several semiconductor companies across Asia, Europe and the US rose.
In Asia, TSMC hit a record high on Monday and closed 1.9% higher in Taiwan.
The world’s largest semiconductor manufacturer, TSMC makes chips for such AMD and Nvidia.
Other Asian chipmakers also saw share prices rise — South Korea’s SK Hynix and Samsung rose nearly 10% and 4%, respectively.
In Europe, globally critical semiconductor equipment company ASML saw shares jump nearly 6%, while shares of Dutch chip maker ASMI rose nearly 5%. Germany’s Infineon rose more than 6%.
Shares of European contract chip maker STMicroelectronics listed on the Paris Stock Exchange rose by almost 6%.
In the United States, Nvidia got a boost from the Foxconn numbers, climbing 2% in premarket US trading.
Microsoft also increased chip stocks on Monday announcement at the end of last week Fr plans to invest $80 billion in 2025 in data centers that can handle AI workloads.
Microsoft is one of several tech giants spending on GPUs (graphics processing units) from Nvidia to train and run the most advanced AI models.
AMD, Nvidia’s closest competitor, rose 3% in premarket trade on Monday, while fellow US chipmakers Qualcomm and Broadcom rose nearly 2%.
