Global semiconductor stocks on Monday, January 6, demonstrated growth after contract electronics giant Foxconn announced record fourth-quarter revenue, a testament that the so-called artificial intelligence boom has room to run.
Hon Hai Precision Industry, which international business is carried out under the Foxconn brand, last Sunday, January 5, stated that its revenue for the mentioned period was recorded at $63.9 billion. This indicator showed an increase of 15% year-on-year.
It is worth noting separately that the mentioned earnings are the highest fourth-quarter revenue ever in company history. The relevant information is contained in a statement released by Foxconn.
The high revenue figure is due to the growth of the company’s cloud and network products, including artificial intelligence servers designed by chipmakers such as Nvidia. Foxconn, which is the main supplier for Apple, also records the upward dynamic in other segments of its business, including, for example, components.
At the same time, according to data published by the company, a slight decline was fixed in such sectors of its business space as computing products and smart consumer electronics, including the iPhone and other smartphones.
On Monday, shares of several semiconductor firms in Asia, Europe, and the United States showed upward momentum as Foxconn’s revenue grew due to the continued scaling of the artificial intelligence industry.
In Asia, the securities of Taiwan Semiconductor Manufacturing Co. (TSMC) reached a record high as part of the movement on an upward trajectory. In Taiwan, the shares of this firm closed up 1.9%. TSMC is the world’s largest semiconductor manufacturer. The company produces chips for brands such as Nvidia and Advanced Micro Devices (AMD).
The value of shares of other Asian manufacturers of microcircuits also showed growth. On Monday, the securities of South Korean SK Hynix and Samsung rose nearly 10% and 4%, respectively.
In Europe, on January 6, the value of shares of the Dutch manufacturer of equipment for making chips ASML increased by almost 6%. Securities of another Dutch producer of equipment for the semiconductor industry, ASM International, rose by nearly 5%. The value of shares of German Infineon Technologies increased by more than 6%. This company is a semiconductor manufacturer. The Paris-listed securities of the European contract chipmaker STMicroelectronics rose by almost 6%.
In the United States, the value of Nvidia shares increased by 2% in premarket trading on the back of record Foxconn revenue.
Moreover, on Monday, the impact factor on the rising dynamic of chip stocks was that last week Microsoft announced its intention to invest $80 billion in data centers that can handle artificial intelligence workloads in 2025. It is worth noting that this company is one of several technology giants splurging on Nvidia’s graphics processing units for training and running the most advanced machine intelligence models.
Also in the United States on Monday, the value of shares of AMD, Nvidia’s closest competitor, rose 3% in premarket trading. Securities of other US chip companies Qualcomm and Broadcom increased by almost 2%.
