Shares of ASML Holding NV, a leading supplier of semiconductor manufacturing equipment, soared 5.21% in pre-market trading on Monday. The stock's pre-market rally comes amid rising demand for chips used in artificial intelligence (AI) applications.

The semiconductor industry is witnessing a surge in demand for advanced chips that power AI systems, driven by the rapid growth of generative AI technologies and AI-enabled products. This increased demand has fueled robust sales for companies involved in the semiconductor supply chain, including chip manufacturers and equipment suppliers like ASML.

Investor sentiment towards ASML and other chip stocks was further bolstered by positive financial results from Foxconn, a major assembler of electronic products. Foxconn reported better-than-expected revenue in the fourth quarter, citing strong demand for servers used in AI applications. The company also forecasted significant growth in sales for the first quarter of 2025, signaling continued momentum in the AI chip market.