Semiconductor stocks climb as Foxconn posts record US$63.9bn revenue and AI investments surge
Semiconductor stocks worldwide rose on Monday following Foxconn's announcement of record-breaking fourth-quarter revenue.
CNBC reported that this milestone highlights the ongoing growth potential of artificial intelligence (AI) technologies.
Hon Hai Precision Industry, operating internationally as Foxconn, revealed on Sunday that its fourth-quarter revenue reached 2.1 trillion New Taiwan dollars (US$63.9bn).
This represents a 15 percent year-over-year increase and marks the highest fourth-quarter revenue in the company’s history.
Foxconn stated that its revenue growth was driven by demand for cloud and networking products, including AI servers designed by companies such as Nvidia, alongside other components and product categories.
However, the company noted “slight declines” in computing products and smart consumer electronics, including iPhones and other smartphones.
Foxconn’s revenue announcement boosted semiconductor stocks across Asia, Europe, and the US.
Nvidia shares rose more than 3 percent on Monday, benefiting from the strong performance.
Jensen Huang, Nvidia's CEO, was scheduled to deliver a keynote address later that day at the Consumer Electronics Show 2025.
Microsoft’s recent announcement of plans to invest US$80bn in 2025 for AI-capable data centres also contributed to the semiconductor rally.
Microsoft’s investment reflects a broader trend, with companies increasing their purchases of GPUs from Nvidia to power advanced AI models.
AMD, Nvidia’s primary competitor, gained more than 3 percent, while US chipmakers Qualcomm and Broadcom also saw stock increases exceeding 1 percent.
In Asia, Taiwan Semiconductor Manufacturing Co. (TSMC) achieved a record high on Monday, closing up nearly 5 percent. The world’s largest semiconductor producer, TSMC manufactures chips for Nvidia and AMD.
South Korea’s SK Hynix and Samsung recorded significant gains as well, with shares rising nearly 10 percent and 4 percent, respectively.
European semiconductor companies also benefited from the positive momentum. ASML, a global semiconductor equipment manufacturer, saw its shares climb 8.7 percent, while fellow Dutch firm ASMI gained 6.2 percent.
Germany’s Infineon rose almost 7 percent, and Paris-listed STMicroelectronics recorded a 7.9 percent increase.
