Semiconductor chips stocks, including Nvidia Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc (NASDAQ:AMD), Broadcom Inc (NASDAQ:AVGO), Taiwan Semiconductor Manufacturing Co (NYSE:TSM), STMicroelectronics (NYSE:STM), Marvell Technology, Inc (NASDAQ:MRVL), Micron Technology, Inc (NASDAQ:MU), Arm Holdings plc (NASDAQ:ARM), Qualcomm Inc (NASDAQ:QCOM), Super Micro Computer, Inc (NASDAQ:SMCI) surged during premarket trading on Monday ahead of the Consumer Electronics Show (CES) in Las Vegas on Tuesday.
The investor enthusiasm also reflects Big Tech giant Microsoft Corp‘s (NASDAQ:MSFT) plans to commit $80 billion to developing AI data centers in fiscal 2025.
Additionally, Foxconn, also known as Hon Hai Technology, reported robust revenue in the fourth quarter, backed by cloud and networking products revenue and AI server demand.
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The Taiwanese Apple Inc (NASDAQ:AAPL) and Nvidia supplier’s revenue grew by over 15%, reaching $64.8 billion. December revenue grew by over 42% to $19.9 billion.
Investors expect Nvidia to offer positive pointers at CES, as Focus Taiwan cites MasterLink Securities analyst Tom Tang alluding to Nvidia chief Jenseng Huang‘s keynote speech at the event.
The semiconductor chip stocks had a remarkable run in 2024, backed by the AI frenzy, pivotal to the S&P 500 and Nasdaq index’s gains of 23%—29% in 2024.
Last year, a third of the 10 global companies worth over $1 trillion valuation were from the chip industry.
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Notably, Nvidia’s valuation surged by over $2 trillion in 2024, breaching the $3 trillion mark. This was backed by its GPUs, which initially targeted video games but ended up being critical hardware for developing AI models. Broadcom joined the trillion-dollar club in 2024, supported by demand for its custom chips.
Contract chipmaker Taiwan Semiconductor remains on track to produce 2nm chips in Taiwan and commercialize 4nm chips at its Arizona fab. It is a key supplier to companies such as Apple, Nvidia, AMD, and more.
Dan Ives of Wedbush expects tech stocks to post a 25% gain in 2025, backed by favorable policies from President-elect Donald Trump and Big Tech spending.
Investors can gain exposure to semiconductor stocks through ProShares Ultra Semiconductors (NYSE:USD) and Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ).
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