Apple and Nvidia’s Little Helper Just Cashed a Record $64 Billion Check

Looks like Apple and Nvidia’s partner, Foxconn, just put a serious exclamation mark on 2024. The Taiwanese manufacturing company reported record-breaking Q4 revenue, pulling in $64.75 billion… a 15% year-over-year jump. (Not bad for a company that’s basically known as “the place where your iPhone comes from” and the answer to “Who actually makes all this stuff?”)

Before you even ask what’s going on, let me give you a hint… it’s AI. The soaring demand for AI servers (packing Nvidia’s chips) was the real reason for the extra billions. Foxconn’s cloud and networking division led the charge, capitalizing on orders for data centers that tech giants like Microsoft and Google rely on to train their AI models. For instance, December alone brought in $21.6 billion in revenue, a 42% increase compared to last year.

As the saying goes, “a rising tide lifts all boats,” and this tide turned into a full-blown tsunami for global semiconductor stocks. In Taiwan, TSMC hit a record high, closing up 1.9%. Over in South Korea, SK Hynix and Samsung posted gains of nearly 10% and 4%. Across the pond, European chipmakers like ASML and Infineon saw their stocks pop by 6%. Stateside, Nvidia grabbed a 2% pre-market jump, while AMD climbed 3%. (If you’re in chips, you’re winning right now.) Oh, and did I mention Microsoft recently announced plans to drop $80 billion in 2025 on AI-ready data centers? (We talked about this yesterday, if you missed it, go “edumucate” yourself).

But before you start throwing your money at Foxconn or Nvidia, let’s zoom out. While Foxconn crushed it in Q4, its consumer electronics division (the one responsible for manufacturing iPhones) had “flattish” growth. Turns out, even Apple can’t dodge the global slowdown in smartphone demand (thanks to China’s cheaper alternatives). And while Foxconn is dipping their toes in electric vehicles and auto tech, those projects are still in the “dream big” phase.

The big question is: how long can AI demand really stay this hot? Analysts are already throwing up caution flags, warning that without truly new applications, this AI craze will end any moment. And if you’ve spent five minutes on YouTube lately, you’ve probably seen one of the million videos comparing this AI boom to the dot-com bubble of the late ’90s. You know, back when companies with names like “Pets.com” convinced everyone they were the future… until reality slapped them (and their investors) into oblivion. And with treasury yields rising again, it poses a huge risk in 2025 for a correction. Don’t say I didn’t warn you.

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Stock.News has positions in Apple, Google, and Microsoft.