By Nauman Khan
Publication Date: 2026-01-05 17:30:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) led chip stocks higher on Monday morning, rising about 2% to $193 as investors priced in stronger AI hardware demand and upbeat supplier news.
The move followed a sales update from Foxconn, which reported roughly 22% fourth-quarter revenue growth and said first-quarter performance may sit near the upper end of its five-year range. Foxconns cloud and networking orders, including AI racks, appear to be ramping.
Advanced Micro Devices (NASDAQ:AMD) climbed about 3% in morning trade, while Broadcom (NASDAQ:AVGO) rose about 1%, showing broad appetite for chipmakers tied to AI infrastructure.
Market attention also turns to the Consumer Electronics Show, where Nvidias CEO Jensen Huang will give a special presentation later Monday and may preview bigger announcements in a keynote. That calendar event may reinforce demand expectations.
Analysts believe that an increase in supply and more orders of servers will probably maintain the current momentum, but the heavy capital spending in the industry on supply stuff will render a dent in the margin expectations. The next round of earnings and vendor updates will be followed by increased vigilance by the investors to determine whether demand will remain high.
