Taiwan Semiconductor's stock price rose 2.49% in after-hours trading, driven by AI demand, leading to double growth in semiconductor and cloud businesses

LB Select
2025.01.06 06:10
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Today, global semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) performed strongly in after-hours trading, with TSMC's stock price rising 2.49% to $213.80, reaching a high of $214.985 at one point. The total market capitalization reached $1.08 trillion. Meanwhile, Hon Hai Precision Industry (Foxconn) also released strong financial report data. In the last quarter of 2023, Hon Hai's revenue reached NT$2.13 trillion, a year-on-year increase of 15%, with December's single-month revenue surging by 42%. Hon Hai stated that sales in the first quarter of 2024 will see significant growth, and it is expected that by 2025, its cloud business revenue will match that of its iPhone manufacturing business. The surge in demand for AI servers and data centers provides solid support for its business growth. At the industry level, the explosion of AI demand is reshaping the semiconductor supply chain, from TSMC's advanced process chips to Hon Hai's data center equipment, the global market is experiencing a new round of recovery. However, some investors still have doubts about the potential slowdown in industry growth, especially since the commercialization path of AI applications has not yet been fully clarified. Analysts point out that future competition in the semiconductor industry will focus more on high-performance computing and cloud services, and companies like TSMC and Hon Hai are expected to continue benefiting from this trend

Today, global semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) performed strongly in after-hours trading, with TSMC's stock price rising 2.49% to $213.80, reaching a high of $214.985 at one point. The total market capitalization reached $1.08 trillion.

At the same time, Hon Hai Precision Industry (Foxconn) also released strong financial report data. In the last quarter of 2023, Hon Hai's revenue reached NT$2.13 trillion, a year-on-year increase of 15%, with December's single-month revenue soaring by 42%. Hon Hai stated that sales in the first quarter of 2024 will see significant growth, and it is expected that by 2025, its cloud business revenue will match that of the iPhone manufacturing business. The surge in demand for AI servers and data centers has provided solid support for its business growth.

At the industry level, the explosion of AI demand is reshaping the semiconductor supply chain, from TSMC's advanced process chips to Hon Hai's data center equipment, the global market is experiencing a new round of recovery. However, some investors still have doubts about the potential slowdown in industry growth, especially since the commercialization path of AI applications has not yet been fully clarified.

Analysts point out that future competition in the semiconductor industry will increasingly focus on high-performance computing and cloud services, with companies like TSMC and Hon Hai expected to continue benefiting from this trend

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