Global chip stocks rise thanks to Foxconn results, demand for artificial intelligence servers

Global semiconductor stocks rose on Monday after the electronics giant’s contract Foxconn announced record revenue in the fourth quarterwhich suggests that the artificial intelligence boom has much more room for development.

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

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

The firm’s strong earnings were driven by growth in its cloud and networking products, including artificial intelligence servers like those developed by such chip makers Nvidia — components and other product segments.

Computing products and smart consumer electronics, which include the iPhone and other smartphones, posted a “slight decline,” Foxconn said.

As a result, shares of several semiconductor companies in Asia, Europe and the US rose.

In Asia, Taiwan Semiconductor Manufacturing Co. hit a record high on Monday and closed up 4.7% in Taiwan.

The largest semiconductor manufacturer in the world, TSMC makes chips for the likes of Advanced Micro Devices and Nvidia.

Shares of other Asian chipmakers also rose, with South Korea’s SK Hynix and Samsung up nearly 10% and 4%, respectively.

In Europe, global critical semiconductor equipment firm ASML jumped nearly 6%, while shares of Dutch company ASMI rose nearly 5%. Germany’s Infineon rose more than 6%.

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

In the States, Nvidia got a boost from the Foxconn numbers, rising 2% in US premarket trading.

Also on Monday, stocks of Microsoft microchips increased 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 spending money on GPUs, or graphics processors, from Nvidia to train and run the most advanced artificial intelligence models.

AMD, Nvidia’s closest rival, rose 3% in premarket trading on Monday, while other U.S. chipmakers Qualcomm and Broadcom both rose nearly 2%.