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KEY TAKEAWAYS
- Chip stocks are surging in premarket trading Monday after Taiwan’s Foxconn posted record fourth-quarter revenue, driven by the boom in artificial intelligence (AI) demand.
- Foxconn, whose formal name is Hon Hai Precision Industry, attributed the gains strong demand from AI servers.
- Shares of Nvidia, AMD, TSMC, and ASML are all rising.
Chip stocks are surging in premarket trading Monday after Taiwan’s Foxconn, which assembles Apple (AAPL) iPhones and Nvidia (NVDA) products, posted record fourth-quarter revenue—driven by the boom in demand for artificial intelligence (AI) technologies.
Foxconn, whose formal name is Hon Hai Precision Industry, said Sunday that its fourth-quarter revenue gained 15% year-over-year to 2.132 trillion New Taiwan dollars ($65.09 billion). Its December sales rose 42% to NT$654.83 billion.
“With strong demand from AI servers, revenue experienced strong growth YoY,” the company said.
Hon Hai shares closed up 2% in Taiwanese trading.
Nvidia CEO Huang to Give CES Keynote Today
Foxconn’s buoyant results are helping lift shares of AI chip companies early Monday.
Nvidia shares are trading up 2% premarket before Chief Executive Officer (CEO) Jensen Huang gives the keynote address at the CES trade show in Las Vegas. Those of rival Advanced Micro Devices (AMD) and Micron Technology (MU) are up 3% and 4%, respectively.
In addition, U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (TSM) and ASML Holding (ASML), the Dutch company that makes semiconductor-making machinery, are up 4.5% and 6%, respectively.
