Foxconn's AI-Driven Growth Propels Semiconductor Stocks Higher

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SEMICONDUCTORS,FOXCONN,AI

Foxconn's strong Q4 2024 revenue, fueled by cloud and networking products, including AI servers, triggered a surge in semiconductor stocks globally.

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 largely attributed to growth in cloud and networking products, including AI servers similar to those designed by Nvidia. Shares of several semiconductor companies across Asia, Europe, and the U.S. rose on Monday. TSMC, the world's largest chipmaker, reached a record high.

Foxconn attributed its revenue surge to cloud and networking products, while computing products and smart consumer electronics, including iPhones and other smartphones, experienced 'slight declines.' In Asia, TSMC closed 1.9% higher in Taiwan, reaching a record high. Other Asian chip firms also saw share price gains, 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%. Germany's Infineon 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 competitor, rose 3% in premarket trading, while fellow U.S. chip firms Qualcomm and Broadcom both climbed almost 2%

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