Chip stocks surged in intraday 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.
Foxconn’s buoyant results are helping lift shares of AI chip companies early Monday.
Nvidia shares rose 4% Monday 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) rose 2.5% and Micron Technology’s (MU) jumped 11%.
In addition, U.S.-listed shares of Taiwan Semiconductor …