Global semiconductor stocks climbed on Monday after Foxconn posted record fourth-quarter revenue, suggesting the AI boom has far more room to run.

Shares of artificial intelligence (AI) chipmakers like Broadcom ( AVGO 1.24%), Marvell Technology ( MRVL 0.80%), and Arm Holdings ( ARM 5.83%) rallied on Monday. At one point, they were up by 4%, 4.4%, and 5.4%, respectively. As of 1:26 p.m. ET, their gains had moderated to 1.2%, 1.7%, and 4.9%, respectively.

Micron was the biggest gainer among semiconductor stocks with a 10.6% rise, while chip-making equipment companies like Applied Materials, Lam Research and KLA Corp rose between 5.1% and 5.5%. The Philadelphia Semiconductor Index hit its highest since mid-October and was last up 3.9%. The index jumped over 19% in 2024.

Foxconn reported a record revenue of NT$654.825 billion (approx. US$19.91 billion) in December 2024, thanks to the initial shipments of GB200-related products. This boost contributed to a total annual revenue of NT$6.

The Taiwan-listed assembler of Apple and Nvidia products posted record revenue for the fourth quarter, helped by robust demand for servers to power burgeoning artificial intelligence technologies.

Key Takeaways The S&P 500 added 0.6% on Monday, Jan. 6, led by a surge in semiconductor stocks as the first full week of the new year began.Teradyne shares pushed higher as Northland Securities analysts highlighted upside potential for the company's electronic testing equipment.

Strong demand for AI servers set Taiwan’s Foxconn to a record fourth-quarter revenue. In a statement, the company said its revenue rose 15.2% to T$2.13

Semiconductor stocks jumped on Monday, lifted by buoyant news regarding the artificial intelligence sector. The S&P and Nasdaq posted two straight days of gains.

Foxconn reported 15% sales growth in Q4 2024, to $63.9 billion, a number that CNBC characterized as "bumper sales performance." The implied strong demand for AI semiconductor chips launched shares of Taiwan Semiconductor Manufacturing Company (NYSE: TSM) to an all-time high at Monday's opening bell.

Chip stocks rose sharply on Monday, partly due to a solid earnings report from Foxconn, which pointed to continued AI demand.

Foxconn's fourth quarter 2024 revenue surged 15.17%, setting a record for the highest revenue ever, driven by strong demand in AI.