Chip stocks including Nvidia, Micron, and ASML surged on Monday after Foxconn reported record fourth quarter revenue, pointing to strong AI demand.

Buoyed by their impressive performance, the companies are busy expanding into new products and places. Contract manufacturers have also been expanding into new industries. In October Foxconn unveiled two new electric-vehicle designs,

Taiwanese chip making giant TSMC said Friday its net sales rose by more than a third last year, beating its own forecast, as the company continued to

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.

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.

Apple and Nvidia supplier Foxconn posted a record topline in Q4 driven by higher cloud and networking and strong demand from AI servers.

Shares of artificial intelligence (AI) chipmakers like Broadcom ( AVGO -3.29%), Marvell Technology ( MRVL -2.34%), and Arm Holdings ( ARM -2.06%) 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.

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.

TSMC reported a 33.9% rise in net sales for 2024, driven by strong demand for AI technology, exceeding its revenue forecast. The company is, however, grappling with geopolitical tensions and supply chain risks.

TSMC is entering an unprecedented growth phase, driven by accelerating AI infrastructure demand. Check out why I reiterate a strong buy rating on TSM stock.

For 2024, TSMC's revenue totaled 2.9 trillion New Taiwan Dollars, its highest annual sales since going public in 1994. Taiwan Semiconductor Manufacturing Co. posted December quarter revenue that topped analyst estimates, as the company continues to get a boost from the AI boom.