Nvidia AI Demands Drive TSMC Growth While Apple Also Benefits

The artificial intelligence sector is driving significant financial growth across major tech companies, with hardware manufacturers like Foxconn and TSMC reporting record performances. Foxconn, also known as Hon Hai Precision Industry, announced a record fourth-quarter revenue of $82.73 billion, a 22.07 percent increase from the previous year. This surge was primarily fueled by accelerating demand for AI servers and cloud infrastructure, particularly within its Cloud and Networking Products division. The company's full-year 2025 cumulative revenue also hit a new high of $258.3 billion, marking an 18.07 percent increase, despite flat or declining sales in its Smart Consumer Electronics and Computing Products segments. Taiwan Semiconductor Manufacturing Co. (TSMC), a crucial supplier for industry giants like Nvidia and Apple, also saw its shares reach new record highs. Goldman Sachs significantly raised its price target for TSMC, citing robust demand for AI and continued tight capacity. The firm anticipates that rapid growth in AI computing will keep silicon demand above supply until 2027. TSMC plans to invest over $150 billion in capital expenditure between 2026 and 2028 to expand its manufacturing capacity, benefiting companies like AMD. The broader market reflects this AI optimism, with the Nasdaq Composite index entering a new bull market. Historical data suggests the Nasdaq could see substantial growth in 2026, with an average annual return of 31 percent during past bull markets. Investor confidence in AI is high, as a Motley Fool report indicates over 60 percent of Americans expect strong long-term returns from companies heavily investing in AI. Major tech players are actively shaping their AI strategies. Meta Platforms is enhancing its advertising business with AI tools, and its conversational assistant, Meta AI, now boasts over 1 billion users. Meanwhile, Microsoft's stock valuation faces scrutiny, with a recent 10.52 percent decline over 90 days, despite strong AI and cloud news. Analysts debate its fair value, with some suggesting it is overvalued at its current price of US$472.94. Amazon and Alphabet are also poised to become major winners in the AI market, especially if the momentum around OpenAI slows, leveraging their extensive resources and pioneering AI research. Beyond the tech giants, AI is fostering diverse collaborations. Sanofi has partnered with U.S. AI research biotech Earendil Labs in a deal potentially worth up to $2.56 billion for autoimmune and immunology development. Even Euan Blair's workplace training company, Multiverse, reported increased operating losses of 63 million pounds despite growing interest in its AI training programs. An AI analyst from TipRanks also recommended three ETFs for investment, including the iShares Evolved US Technology ETF, highlighting the widespread financial impact of AI.

Key Takeaways

• Foxconn reported record Q4 revenue of $82.73 billion, a 22.07% increase, primarily driven by strong demand for AI servers and cloud infrastructure.
• Foxconn's full-year 2025 cumulative revenue reached $258.3 billion, an 18.07% increase, marking its highest annual record.
• TSMC shares surged to record highs, with Goldman Sachs raising price targets significantly (e.g., NT$2,330), due to robust AI demand and tight capacity.
• TSMC, a key supplier for Nvidia and Apple, plans to invest over $150 billion in capital expenditure between 2026 and 2028 to meet growing AI chip demand.
• The Nasdaq Composite index entered a new bull market, with historical data suggesting an average annual return of 31% in 2026, fueled by AI optimism.
• Meta Platforms is enhancing its advertising business with AI tools and its Meta AI conversational assistant now serves over 1 billion users.
• Microsoft's stock valuation is under debate, with a recent 10.52% decline over 90 days, despite strong AI and cloud news, prompting fair value discussions.
• Amazon and Alphabet are positioned as potential major winners in the AI market, ready to gain share if OpenAI's growth decelerates.
• Sanofi entered a partnership with AI biotech Earendil Labs for autoimmune and immunology development, a deal potentially worth up to $2.56 billion.
• Over 60% of Americans, especially younger investors, expect strong long-term returns from companies heavily investing in artificial intelligence.

Foxconn Q4 Revenue Jumps 22 Percent on Strong AI Demand

Foxconn reported a record 22 percent increase in its fourth-quarter revenue compared to last year. This strong growth was mainly due to high demand for AI products, especially in its Cloud and Networking Products division. Foxconn expects its first-quarter revenue to stay strong, near the top of its usual range, because of ongoing AI rack shipments. However, its Smart Consumer Electronics and Computing Products segments saw flat or declining sales.

Foxconn Reports Record Q4 Revenue Driven by AI Products

Taiwan's Foxconn, also known as Hon Hai Precision Industry, announced record revenue for its fourth quarter on January 5. The company saw a 22.07 percent increase from the previous year, mainly because of strong demand for artificial intelligence products. This growth was higher than expected and set a high standard for the first quarter of 2026. While information and communications technology products usually slow down seasonally in Q1, Foxconn expects continued strong demand for AI server racks to keep performance high. Its cloud and networking products division performed very well, but smart consumer electronics like iPhones saw a small decline due to exchange rates.

Foxconn Q4 Revenue Soars 22 Percent on Strong AI Server Demand

Foxconn, also known as Hon Hai Precision Industry, reported a record 22.07 percent increase in its fourth-quarter revenue, reaching about $82.73 billion. This significant jump was primarily due to the accelerating demand for artificial intelligence products, especially AI servers and cloud infrastructure. The company's Cloud and Networking segment showed rapid growth, while consumer electronics, including iPhones, remained flat or slightly declined. Foxconn is expanding its manufacturing capacity globally and sees AI infrastructure as its main growth driver, offering higher profit margins than traditional electronics.

Foxconn Achieves Record Q4 Revenue with 22 Percent AI Boost

Taiwan's Foxconn, known as Hon Hai Precision Industry, announced record fourth-quarter revenue on January 5, driven by strong demand for artificial intelligence products. The world's largest contract electronics maker saw its revenue jump 22.07 percent from the previous year to $82.73 billion. This result surpassed analyst expectations and set a high benchmark for the first quarter of 2026. While traditional information and communications technology products face a seasonal slowdown, robust demand for AI server racks is expected to keep performance strong. Foxconn's cloud and networking products division showed significant growth, but its smart consumer electronics segment, including iPhones, experienced a slight decline due to exchange rates.

Hon Hai Reports Record Annual Revenue Fueled by AI Products

Hon Hai Precision Industry, also known as Foxconn, reported record-breaking financial results for 2025, largely driven by demand for artificial intelligence products. The company's December 2025 revenue hit $27.43 billion, a 31.77 percent increase from the previous year and its highest December ever. For the fourth quarter of 2025, total revenue reached $82.77 billion, marking a 22.07 percent year-over-year rise and a new single-quarter record. The full year 2025 saw cumulative revenue of $258.3 billion, an 18.07 percent increase and the highest annual record for the firm. Growth was primarily led by Cloud and Networking Products and Components, while Smart Consumer Electronics and Computing Products saw declines or remained flat. The company expects strong AI rack shipments to continue supporting its performance into the first quarter of 2026.

TSMC Shares Hit Record High as AI Demand Boosts Outlook

Shares of Taiwan Semiconductor Manufacturing Co. TSMC jumped by 6.9 percent to a new record high in Taipei. This surge comes from strong investor confidence in artificial intelligence demand, with Goldman Sachs raising its price target for the chipmaker by 35 percent to NT$1,060. TSMC, a key supplier for Nvidia and Apple, is seen as a multi-year growth engine for AI, with improving profit margins. The company plans to invest $150 billion over the next three years to expand its capacity. TSMC's strong performance also helped Taiwan's Taiex index reach a record high.

TSMC Reaches New Record High on Strong AI Demand Outlook

TSMC shares reached a new record high on Monday after Goldman Sachs significantly raised its price target for the company. Goldman Sachs increased its target to NT$2,330, citing strong demand for artificial intelligence and continued tight capacity. The firm believes that rapid growth in AI computing will keep silicon demand higher than supply until 2027, strengthening TSMC's leading role in advanced manufacturing. TSMC's Taipei-listed shares jumped by 7 percent to NT$1,695, having already gained over 40 percent in 2025. Goldman Sachs also expects TSMC to invest over $150 billion in capital expenditure between 2026 and 2028 to meet this growing demand.

TSMC Stock Hits Record High as Goldman Sachs Boosts Target

TSMC shares reached a record high in Taipei after Goldman Sachs Group Inc. raised its price target by 35 percent. Goldman Sachs increased its target for TSMC's American depositary receipts to $170, highlighting strong optimism about the company's role in the artificial intelligence boom. Analyst Bruce Liu noted that TSMC is well-positioned to benefit from the surging demand for AI chips, driven by companies like Nvidia and AMD. TSMC's advanced manufacturing and strong customer relationships make it a critical player in the AI supply chain. The company's recent earnings and positive outlook further boosted investor confidence.

Nasdaq Bull Market Expected to Soar in 2026 Two AI Stocks to Watch

The Nasdaq Composite index recently entered a new bull market, and historical data suggests it could see substantial growth in 2026, with an average annual return of 31 percent during past bull markets. Wall Street analysts recommend two artificial intelligence stocks for investors: Meta Platforms and Datadog. Meta Platforms is enhancing its advertising business with AI tools and its conversational assistant, Meta AI, has over 1 billion users. Datadog leads in observability software, which is vital for AI applications, and its Watchdog AI engine helps detect issues. Both companies reported strong third-quarter financial results and are well-positioned for future growth in the AI sector.

Nasdaq Bull Market Expected to Soar in 2026 Two AI Stocks to Watch

The Nasdaq Composite index recently entered a new bull market, and historical data suggests it could see substantial growth in 2026, with an average annual return of 31 percent during past bull markets. Wall Street analysts recommend two artificial intelligence stocks for investors: Meta Platforms and Datadog. Meta Platforms is enhancing its advertising business with AI tools and its conversational assistant, Meta AI, has over 1 billion users. Datadog leads in observability software, which is vital for AI applications, and its Watchdog AI engine helps detect issues. Both companies reported strong third-quarter financial results and are well-positioned for future growth in the AI sector.

Most Americans Expect Strong Long-Term Returns from AI Stocks

A new report from The Motley Fool, the 2026 AI Investor Outlook Report, reveals that over 60 percent of Americans believe companies heavily investing in artificial intelligence will provide strong long-term returns. Younger investors are particularly confident in AI's potential, with many already owning AI stocks. These investors have experienced AI tools firsthand and recognize their game-changing ability to transform businesses and the economy. Analysts suggest that AI is a generational investment opportunity, and companies that benefit from AI optimization and support its infrastructure will see superior returns.

Microsoft Stock Valuation Debated Amid AI Spending and Volatility

Microsoft's stock valuation is under scrutiny after the company filed a US$110.08 billion shelf registration for employee stock ownership plans. While Microsoft has seen strong AI and cloud news, its share price recently declined by 10.52 percent over 90 days, closing at US$472.94. Some analysts, like PicaCoder, believe the stock is overvalued, setting a fair value of US$420 due to concerns about AI competition, cash burn, and potential revenue cannibalization. However, a Discounted Cash Flow model suggests the stock is undervalued by 21.7 percent, with a fair value of US$604.22. Microsoft reported US$293.8 billion in revenue and US$104.9 billion in net income, which could support investor confidence in its business model.

Sanofi Partners with AI Biotech Earendil in $2.5 Billion Deal

Sanofi has signed a new agreement with U.S. artificial intelligence research biotech Earendil Labs for autoimmune and immunology development. This partnership could be worth up to $2.56 billion for Earendil, including milestone payments and royalties on future drug sales. Sanofi will handle the development and global sales of any new bispecific drugs from this collaboration. Earendil Labs, known for its AI-driven research in next-generation biologic therapeutics, will use its platform to find and improve bispecific antibody candidates more efficiently. This deal is part of Sanofi's ongoing efforts to strengthen its autoimmune and immunology drug pipeline.

Euan Blair's Multiverse Losses Grow to 63 Million Pounds

Euan Blair's workplace training company, Multiverse, reported increased operating losses, which grew to 63 million pounds. This happened despite the company seeing higher revenue and growing interest in its AI training programs. Multiverse was valued at 1.4 billion pounds in 2022. The widening losses are due to rising costs within the company.

Pepeto Meme Coin Offers Utility Against AI Agent Presales

The article compares Pepeto, a meme coin, with AI agent presales, highlighting Pepeto as a strong cryptocurrency investment. Meme presales like Pepeto offer viral trading volume and cultural momentum, while AI agent presales promise automated yield generation through algorithmic trading. However, AI agent projects face risks such as technical execution, regulatory uncertainty, and adoption challenges. Pepeto, currently priced at $0.000000175 with over $7.14 million raised and 216 percent staking yields, focuses on building meme infrastructure. This includes zero-fee swaps through PepetoSwap, a Pepeto Bridge for cross-chain transactions, and a Pepeto Exchange with over 850 project applications, generating revenue from platform and listing fees.

AI Analyst Recommends Three Top ETFs for Investment

An artificial intelligence analyst from TipRanks has identified three exchange-traded funds, or ETFs, as top investment choices for January 5, 2026. These ETFs received an "Outperform" rating and are expected to have at least a 10 percent upside. The recommended funds include the iShares Evolved US Technology ETF, the Communication Services Select Sector SPDR Fund, and the Goldman Sachs S&P 500 Core Premium Income ETF.

Amazon and Alphabet Could Win if OpenAI Slows Down

If the excitement around OpenAI decreases, Amazon and Alphabet could become major winners in the artificial intelligence market. Pivotal Research analyst Daniel Ives suggests that both Amazon and Alphabet are heavily investing in their own AI technologies and infrastructure. OpenAI's dependence on Microsoft for cloud services and funding could be a weakness. With their extensive resources and diverse businesses, Amazon and Alphabet are well-prepared to gain market share and advance their AI development if OpenAI falters. Amazon Web Services and Google's pioneering AI research position them as strong competitors in the evolving AI landscape.

Sources

• Foxconn's Q4 revenue surges 22% Y/Y driven by AI demand
• Foxconn's Q4 revenue surges 22.07% from a year earlier on AI demand
• Foxconn Q4 Earnings Jump 22.07% Year-Over-Year as AI Demand Accelerates
• Foxconn’s Q4 revenue jumps 22% to record high on AI demand
• Hon Hai Precision Industry reports record annual revenue, driven by AI product demand
• TSMC Shares Jump Most Since April After Goldman Lifts Target 35%
• TSMC hits fresh record high after Goldman raises target on AI demand outlook By Investing.com
• TSMC Shares Hit Record After Goldman Raises Target on AI Demand
• History Says the Nasdaq Will Soar in 2026: 2 AI Stocks to Buy Now, According to Wall Street
• History Says the Nasdaq Will Soar in 2026: 2 AI Stocks to Buy Now, According to Wall Street
• Why 60% of Americans Believe AI Stocks Will Deliver Strong Long-Term Returns
• Microsoft (MSFT) Valuation Check As AI Spending And Stock Volatility Refocus Investor Attention
• Sanofi's latest autoimmune bispecific pact with AI biotech could reach $2.5B
• Euan Blair’s Multiverse sees losses widen to £63m
• Pepeto vs AI Agent Presales: Viral Meme Trading vs Automated Yield Narratives and Why Pepeto Is the Best Crypt
• 3 Best ETFs to Invest In, According to AI Analyst, 01/05/2026
• 2 Tech Stocks That Could Be Winners If the OpenAI Boom Turns to Bust