Global chip stocks climb as Foxconn’s bumper results show a continuation of the AI boom

Global chip stocks climb as Foxconn’s bumper results show a continuation of the AI boom


Jakub Porzyck | Nurphoto | Getty Images

Global semiconductor stocks climbed on Monday after contract electronics giant Foxconn announced record fourth-quarter revenues, suggesting the artificial intelligence boom has far more room to run.

Hon Hai Precision Industry, which does business as Foxconn internationally, said in a Sunday statement that the company’s fourth-quarter revenue totaled 2.1 trillion New Taiwan dollars ($63.9 billion), growing 15% year-over-year.

Foxconn — which is a supplier to Apple — also set a record, posting the highest fourth-quarter revenue ever in company history, according to the statement.

The firm’s bumper revenue performance was driven by growth in its cloud and networking products — which includes AI servers like those designed by the likes of chipmaker Nvidia — and components and other products segments.

Computing products and smart consumer electronics — which numbers iPhone and other smartphones — saw “slight declines,” Foxconn said.

Shares of several semiconductor firms across Asia, Europe and the U.S. rose, as a result.

In Asia, TSMC hit a record high Monday and closed 1.9% higher in Taiwan.

The largest semiconductor manufacturer globally, TSMC produces chips for the likes of AMD and Nvidia.

Other Asian chip firms also logged share price gains — South Korea’s SK Hynix and Samsung rose nearly 10% and 4%, respectively.

In Europe, globally critical semiconductor equipment firm ASML saw its shares jump almost 6%, while fellow Dutch chip company ASMI’s stock rose almost 5%. Germany’s Infineon surged more than 6%.

The momentum in semi stocks could last as they have great earnings momentum, says Jim Cramer

Paris-listed shares of European contract chipmaker STMicroelectronics rose nearly 6%.

Stateside, Nvidia got a boost from the Foxconn numbers, climbing 2% in U.S. premarket trading.

Also boosting chip stocks on Monday was Microsoft’s announcement at the end of last week about plans to invest $80 billion in 2025 on data centers that can handle AI workloads.

Microsoft is one of several tech giants splurging on GPUs (graphics processing units) from Nvidia to train and run the most advanced AI models.

AMD, Nvidia’s closest rival, rose 3% in pre-market trading Monday, while fellow U.S. chip firms Qualcomm and Broadcom both climbed almost 2%.



Source

Figma CEO says AI superintelligence is not a looming threat to the company
Technology

Figma CEO says AI superintelligence is not a looming threat to the company

Figma co-founder and CEO Dylan Field said Thursday that artificial intelligence doesn’t pose a serious threat to the future of the design software company, which is on the verge of debuting on the public markets. “We’re in this moment where you might, if you’re singularity-pilled, go, ‘Hey, superintelligence is coming and it’ll be able to […]

Read More
Meta, Microsoft roar higher on strong earnings as AI spending booms
Technology

Meta, Microsoft roar higher on strong earnings as AI spending booms

META CEO Mark Zuckerberg (L) and Microsoft CEO Satya Nadella. Getty Images Shares of Meta soared 12% and Microsoft popped 5% on Thursday, after the companies reported better-than-expected earnings that beat on top and bottom lines. Microsoft topped the $4 trillion market cap benchmark with the move, joining Nvidia in the club. Both Meta and […]

Read More
Nvidia’s China-bound H20 AI chips face Beijing scrutiny over ‘tracking’ and security concerns
Technology

Nvidia’s China-bound H20 AI chips face Beijing scrutiny over ‘tracking’ and security concerns

China is one of Nvidia’s largest markets, particularly for data centers, gaming and artificial intelligence applications. Avishek Das | Lightrocket | Getty Images While Nvidia has been given assurances by Washington that it will be allowed to resume exports of its made-for-China H20 general processing units, the AI chips’ return may be met with increased […]

Read More