Global chip stocks rise on Foxconn results, AI server demand

Global semiconductor stocks rose on Monday after the electronics giant’s deal Foxconn announced record fourth quarter revenuethe artificial intelligence boom suggests there is more room to operate.

Hon Hai Precision Industry, which operates internationally as Foxconn, said on Sunday. statement the company’s fourth-quarter revenue increased 15% year-on-year to 2.1 trillion New Taiwan dollars ($63.9 billion).

Foxconn is the supplier apple — also set a record for the highest fourth-quarter revenue in the company’s history.

The firm’s bumper revenue performance was driven by growth in its cloud and networking products — which include artificial intelligence servers made by chipmakers. Nvidia — and components and other product segments.

Foxconn said that computing products and smart consumer electronics – which includes the iPhone and other smartphones – saw a “slight decline”.

As a result, shares of several semiconductor firms in Asia, Europe and the United States rose.

in Asia, Taiwan Semiconductor Manufacturing Co. It hit a record high on Monday and closed up nearly 5% in Taiwan.

TSMC, the largest semiconductor manufacturer globally, makes chips Advanced Micro Devices and Nvidia.

Other Asian chip firms also posted gains in share prices, with South Korea’s SK Hynix and Samsung up about 10% and 4%, respectively.

In Europe, global critical semiconductor equipment firm ASML saw shares rise almost 6%, while another Dutch chip company ASMI rose more than 5%. Germany’s Infineon rose about 7%.

European contract chip maker STMicroelectronics rose nearly 7% in Paris.

In the United States, Nvidia got a boost from the Foxconn numbers, rising almost 4% in US premarket trading.

Microsoft’s chip stock surged on Monday announcement at the end of last week approx Plans to invest $80 billion in data centers capable of handling AI workloads by 2025.

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

Nvidia’s closest rival AMD rose nearly 3% in premarket trading on Monday, while other US chip firms Qualcomm and Broadcom also rose by about 3%.