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Global semiconductor stocks rallied on Monday following the electronics giant's deal Foxconn announced record revenues in the fourth quarterwhich suggests that the AI boom has much more room to operate.
– Hon Hai Precision Industry, which operates internationally under the name Foxconn, reported on Sunday statement that the company's fourth-quarter revenue was NT$2.1 trillion ($63.9 billion), up 15% year-on-year.
Foxconn – which is a supplier of, among others, Apple — also set a record by posting the highest fourth-quarter revenue in the company's history, according to the statement.
The company's strong revenues were driven by the development of cloud and networking products, including AI servers such as those designed by chipmakers such as Nvidia — and components and other product segments.
Computer products and smart consumer electronics – including the iPhone and other smartphones – saw “slight declines,” Foxconn said.
Shares of several semiconductor companies in Asia, Europe and the US rose as a result.
In Asia, TSMC hit a record high on Monday, while in Taiwan it closed up 1.9%.
The world's largest semiconductor manufacturer, TSMC, produces chips, among others AMD and Nvidia.
Other Asian chip companies also saw their share prices rise, with South Korea's SK Hynix and Samsung rising almost 10% and 4%, respectively.
In Europe, shares of ASML, a global semiconductor equipment company, rose almost 6%, while shares of another Dutch chipmaker, ASMI, rose almost 5%. Germany's Infineon rose over 6%.
Paris-listed shares of European contract chipmaker STMicroelectronics rose almost 6%.
In the US, Nvidia gained ground on Foxconn's results, rising 2% in pre-launch trading in the US.
Microsoft also saw an increase in chip stocks on Monday announcement at the end of last week approx plans to invest $80 billion in 2025 in data centers that can handle AI workloads.
Microsoft is one of several tech giants investing in Nvidia's GPUs (graphics processing units) to train and run the most advanced artificial intelligence models.
AMD, Nvidia's closest rival, rose 3% in pre-market trading on Monday, while fellow U.S. chipmakers Qualcomm and Broadcom rose nearly 2%.