Hon Hai Precision Industry, known internationally as Foxconn, reported revenue of 2.1 trillion New Taiwan dollars ($63.9 billion) in the fourth quarter of 2024, a 15% increase year-over-year. This strong performance was primarily driven by growth in cloud and networking products, including AI servers similar to those designed by Nvidia. Shares of semiconductor companies across Asia, Europe, and the U.S. surged on Monday, with TSMC, the world's largest chipmaker, reaching a record high.
Foxconn attributed its revenue surge to cloud and networking products, which encompass AI servers. Computing products and smart consumer electronics, including iPhones and other smartphones, saw 'slight declines,' according to Foxconn. In Asia, TSMC reached a record high on Monday, closing 1.9% higher in Taiwan. Other Asian chip companies also saw share price increases, with South Korea's SK Hynix and Samsung rising nearly 10% and 4%, respectively. In Europe, ASML, a globally critical semiconductor equipment firm, saw its shares jump almost 6%, while fellow Dutch chip company ASMI's stock rose almost 5%. Infineon, a German firm, surged more than 6%. In the U.S., Nvidia benefited from Foxconn's performance, climbing 2% in premarket trading. Microsoft, among other tech giants, is investing heavily in Nvidia's GPUs (graphics processing units) to train and run advanced AI models. AMD, Nvidia's main competitor, rose 3% in premarket trading Monday, while fellow U.S. chip firms Qualcomm and Broadcom both climbed almost 2%