Global chip stocks big pump, Hon Hai sets revenue record, highlighting the AI boom

According to CNBC, global semiconductor stocks surged on Monday, as the world’s largest electronics contract manufacturer, Foxconn, announced that its fourth-quarter revenue hit a record high, indicating that the artificial intelligence (AI) boom driving demand for cutting-edge hardware is still gaining momentum.

Hon Hai stated that its fourth-quarter revenue reached an unprecedented 2.13 trillion New Taiwan dollars (approximately 63.9 billion US dollars), a year-on-year growth of 15%. This achievement highlights the increasing demand for AI-related products and services worldwide.

Hon Hai’s revenue performance is impressive

Foxconn’s performance in the fourth quarter broke historical records, becoming the highest quarter in the company’s history. Foxconn attributes its strong growth to the sales performance of its cloud and internet products division, which includes AI servers supported by top chip manufacturers such as Nvidia.

However, not all areas are showing growth. Hon Hai’s report states that sales of computer products and smart consumer electronics (such as iPhones and other smartphones) have slightly declined, reflecting a shift in the market towards enterprise-level and AI-related technologies.

The chain reaction of the global semiconductor market

The impact of Hon Hai’s performance rippled through the world’s major semiconductor markets, with chip stocks in Asia, Europe and the United States all rising (as of 1/6 pm Taipei time).

Asia: TSMC, the world’s largest chip manufacturer, reached a record high with a nearly 5% increase in stock price. TSMC produces chips for industry giants such as AMD and Nvidia. Other Asian chip manufacturers, such as SK Hynix in South Korea and Samsung Electronics, saw their stock prices rise by approximately 10% and 4% respectively.

Europe: European chip companies also performed strongly. Semiconductor equipment leader ASML’s stock price rose nearly 6%, while another Dutch company, ASMI, rose more than 5%. German semiconductor company Infineon’s stock price rose by about 7%, and French semiconductor company STMicroelectronics’ stock price listed in Paris rose by 7%.

US: Nvidia’s stock price rose nearly 4% on the back of Hon Hai’s performance. Nvidia, which supplies GPUs (graphics processors) for advanced AI models, also benefits from the widespread AI boom. Other US semiconductor giants such as AMD, Qualcomm, and Broadcom saw their stock prices rise by about 3%.

Microsoft’s AI investment further ignites

Microsoft recently announced plans to invest $80 billion in expanding data centers equipped with AI workloads by 2025, further fueling market optimism for semiconductors.

Microsoft and other tech giants are major customers of Nvidia GPU. This announcement further boosted the stock prices of chip manufacturers such as AMD (Nvidia’s closest competitor), with AMD’s stock rising by about 3% in pre-market trading.

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