Semiconductor chip stocks rose on Monday after electronics giant Foxconn (HNHPF+1.24%) reported record-breaking revenue for its fourth quarter, as the artificial intelligence boom continues into 2025.
Foxconn, formally known as Hon Hai Precision Industry, on Sunday reported revenue of $2.13 trillion in New Taiwan dollars ($65 billion) for the October to December period. Despite revenue falling month-over-month in November and December, the world’s largest electronics maker recorded growth in each month compared to a year earlier. That gave the company a 15% year-over-year increase, a record for the major Apple supplier.
In a statement, Foxconn cited “strong demand” for AI servers, new computing products, and growth in its automotive-related business. Foxconn has started developing its own business around electric vehicles and has plans for a major campus in Zhengzhou, China, also known as “iPhone City. Its computing products division also showed “strong growth” driven by demand for new products, while its smart consumer electronics division slightly declined due to production issues.
“In the first quarter of 2025, overall operations have gradually entered the traditional off-season,” Foxconn said. The company added that the quarter should show “significant growth” compared to the same time in 2024.
Shares of semiconductor companies across the world rose on the news of Foxconn’s revenue and first-quarter forecast, including Taiwan Semiconductor Manufacturing Company, which produces about 90% of the world’s chips.
TSMC (TSM+3.35%) stock rose almost 5% in pre-market trading in New York, adding to its major rally in 2024. Nvidia stock was up more than 2% in early trading, building on its own supersized gains in 2024. Advanced Micro Devices (AMD+3.86%) stock rose by almost 3%, while Intel (INTC+1.71%) shares ticked up slightly by 1% and Synopsys (SNPS+2.29%) shares climbed 2% in pre-market trading.
The Netherlands-based ASML’s (ASML+2.17%) stock was up almost 6%, while Switzerland’s STMicroelectronics (STM+0.58%) saw its shares climb by almost 7%. Other European companies, including ASMI (ASMIY+1.52%) and Infineon (IFNNY-0.06%), also saw gains. Shares in South Korean’s SK Hynix (HXSCL) and Samsung rose by almost 10% and 3%, respectively.
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