ASML Holding NV, a leading supplier of semiconductor manufacturing equipment, saw its stock soar by over 6% in pre-market trading on Monday. This significant rally comes amidst rising demand for advanced chips used in artificial intelligence (AI) applications and promising financial results from a major industry player.
The semiconductor industry is witnessing a surge in demand for cutting-edge 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.
Moreover, investor sentiment towards ASML and other chip stocks was further bolstered by Foxconn's better-than-expected revenue in the fourth quarter. Foxconn, a major assembler of electronic products, cited strong demand for servers used in AI applications and forecasted significant growth in sales for the first quarter of 2025, signaling continued momentum in the AI chip market.
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