Nvidia Stock Rises. Why Foxconn's Earnings Can Give the Chip Maker a Boost
Nvidia stock was rising on Friday after a key supplier's latest earnings report appeared to bode well for the artificial-intelligence trade, even as investors fret about slowing consumer spending.
The chip maker's shares climbed 2% to $117.86 in premarket trading. Futures tracking the S&P 500 were up 0.8%.
Results from Taiwanese electronics maker Hon Hai Precision Industry, known internationally as Foxconn, appeared to be giving the stock a boost. The company's net profit slid over the fourth quarter, but it said that its revenue for AI servers should surpass 1 trillion New Taiwanese dollars ($30 billion) in 2025.
That guidance could be seen as a sign that demand for AI products -- including Nvidia's graphics processing units -- will remain strong this year, even as U.S. President Donald Trump's tariffs fuel worries about a flare-up in inflation and slowdown in growth.
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