Global Chip Stocks Rise On News Of Foxconn's Strong Results

(MENAFN- Baystreet) Stocks of microchip and semiconductor companies are marching higher on news of strong quarterly financial results from contractor Foxconn (TPE:2317).

Hon Hai Precision Industry, which does business internationally as Foxconn, announced record fourth quarter 2024 revenue, suggesting the artificial intelligence (A.I.) boom is continuing.

Specifically, Foxconn reported Q4 revenue of 2.1 trillion New Taiwan dollars ($63.9 billion U.S.), up 15% from a year ago.

Foxconn, which is a major manufacturer of Apple's (AAPL) iPhone, said its revenue was driven by growth in its cloud and networking products that include A.I. servers like those designed by chipmaker Nvidia (NVDA).

Shares of several semiconductor firms across Asia, Europe, and the U.S. are rising on news of Foxconn's financial results, which are being viewed as a bullish indicator for the sector.

In Asia, Taiwan Semiconductor Manufacturing Co. (TSM) saw its stock hit a record high. The largest semiconductor manufacturer worldwide, TSMC produces chips for Apple and Nvidia.

In Europe, semiconductor equipment firm ASML (ASML) saw its shares increase 5%, while the stock of Germany's Infineon (ETR:IFX) surged 6% higher.

In the U.S., Nvidia's stock was up 2% in premarket trading on Jan. 6. Shares of Advanced Micro Devices (AMD), Nvidia's main rival, were up 3% ahead of the market's opening.

Chipmakers are also getting a boost from news that Microsoft (MSFT) plans to spend $80 billion U.S. on new A.I. data centres in coming months.

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