Global chip stocks rise on Foxconn results and demand for AI servers

Global semiconductor stocks rose on Monday after the electronics giant held Foxconn Announce Record fourth quarter revenueWhich suggests that the AI ​​boom has much more room to run.

Hon Hai Precision Industry, which does business internationally under the name Foxconn, said on Sunday statement The company’s revenues in the fourth quarter amounted to 2.1 trillion New Taiwan dollars ($63.9 billion), an increase of 15% year-on-year.

Foxconn – it is the supplier of apple – It also set a record, recording the highest fourth-quarter revenue ever in the company’s history, according to the statement.

The company’s bumper revenue performance was driven by growth in its cloud and network products – which include AI servers like those designed by the likes of the chip maker Nvidia – Components and other product segments.

Foxconn said its smart computing and consumer electronics products — which include iPhones and other smartphones — saw “minor declines.”

As a result, shares of many semiconductor companies rose across Asia, Europe and the United States.

In Asia, Taiwan Semiconductor Manufacturing Co. posted a record high on Monday and closed 1.9% higher in Taiwan.

TSMC is the world’s largest semiconductor manufacturer, producing chips for the likes of it Advanced micro devices And Nvidia.

Other Asian chip companies also posted share price gains, with South Korea’s SK Hynix and Samsung shares rising 10% and 4%, respectively.

In Europe, global biosemiconductor equipment company ASML saw its shares rise nearly 6%, while Dutch chip company ASMI rose nearly 5%. German Infineon shares rose by more than 6%.

Shares of European chipmaker ST Microelectronics, listed in Paris, rose by about 6%.

In the US, Nvidia got a boost from Foxconn’s numbers, rising 2% in US pre-market trading.

Chip stocks on Monday also boosted Microsoft shares advertisement Last weekend about It plans to invest $80 billion in 2025 on data centers that can handle AI workloads.

Microsoft is one of several tech giants spending on graphics processing units, or GPUs, from Nvidia to train and run its most advanced AI models.

Shares of AMD, Nvidia’s closest competitor, rose 3% in pre-market trading on Monday, while shares of other US chip companies rose. Qualcomm and Broadcom Both rose nearly 2%.