Nvidia, TSMC, Other AI Chip Stocks Surge as Foxconn Posts Record Revenue

KEY TAKEAWAYS

Chip stocks are surging in premarket trading Monday after Taiwan’s Foxconn, which assembles Apple (

AAPL

) iPhones and Nvidia (

NVDA

) products, posted record fourth-quarter revenue—driven by the boom in demand for
artificial intelligence (AI)
technologies.

Foxconn, whose formal name is Hon Hai Precision Industry, said Sunday that its fourth-quarter revenue gained 15% year-over-year to 2.132 trillion
New Taiwan dollars
($65.09 billion). Its December sales rose 42% to NT$654.83 billion.

“With strong demand from AI servers, revenue experienced strong growth YoY,” the company said.

Hon Hai shares closed up 2% in Taiwanese trading.

Nvidia CEO Huang to Give CES Keynote Today

Foxconn’s buoyant results are helping lift shares of AI chip companies early Monday.

Nvidia shares are trading up 2% premarket before
Chief Executive Officer (CEO)
Jensen Huang gives the
keynote address
at the CES trade show in Las Vegas. Those of rival Advanced Micro Devices (

AMD

) and Micron Technology (

MU

) are up 3% and 4%, respectively.

In addition, U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (

TSM

) and
ASML Holding
(

ASML

), the Dutch company that makes semiconductor-making machinery, are up 4.5% and 6%, respectively.

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