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Shares of NVIDIA (Nasdaq: NVDA) were moving higher to start the week, after the AI chipmaker’s stock rose nearly 5% in early trading on strong results from a partner firm.

The partner firm is Foxconn, the world’s largest contract electronics maker. Taiwan-based Foxconn posted record revenue in the fourth quarter, buoyed by high demand for AI servers contracts.

Investors saw the results as a positive for NVIDIA, an AI stock that makes chips to process data for data centers. NVIDIA is a partner of Foxconn, as its chips are used in Foxconn’s AI servers at data centers. And it was Foxconn’s AI server business that drove the 15% year over year increase in revenue to USD$64 billion.

Foxconn also makes electronics for computers and consumer electronics, with one of its major clients being Apple. That business saw slight revenue declines in the quarter, reported CNBC.

NVIDIA stock was up about 5% on Monday to over $151 per share. Apple stock was roughly flat on the day. Foxconn trades on the Taiwan stock exchange and was up about 2.6% on Monday.

Huang to keynote at CES

NVIDIA finished 2024 as one of the top performing stocks on both the Nasdaq and S&P 500. NVIDIA stock gained 171% in 2024, after gaining 239% in 2023.

Given the company’s massive success the past two years, it is fitting that NVIDIA CEO Jensen Huang will kick off 2025 with the keynote address at the Consumer Electronics Show (CES) in Las Vegas on Monday.

Investors are looking forward to the speech, as CES is typically the stage where new breakthrough technologies are introduced. According to NVIDIA officials, “Huang’s keynote is no exception.” Interested parties can view Huang’s keynote on the company’s YouTube channel. The keynote starts at 6:30 p.m. PT, 9:30 p.m. ET live from Las Vegas on January 6.

NVIDIA will be front and center at CES all week, “showcasing innovations in AI, robotics and accelerated computing across NVIDIA’s automotive, consumer, enterprise, Omniverse and robotics portfolios.”

Blackwell chips in high demand

NVIDIA is poised for another huge year in 2025, as it rolls out its new next generation Blackwell AI chips, which are touted as being more advanced and faster than previous chips.

“Blackwell demand is staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us,” NVIDIA CFO Colette Kress said on the Q3 earnings call.

The company posted record revenue of $35.1 billion in Q3, up 94% year over year, while net income increased 109% to $19.3 billion.

Roughly 88% of its revenue came from AI data centers, a 112% increase from the same quarter a year ago. In the fourth quarter, NVIDIA anticipates record revenue of $37.5 billion, which would be 7% higher than Q3.

Kress said the gross margins may dip a bit in the first half of the year due to the Blackwell ramp up, but earnings power will remain strong.

Wall Street analysts have set a consensus price target of $175 per share for NVIDIA, which would be about a 15% increase. The stock is considered a buy across the board. However, the P/E is high at 57. But it is lower than it has been in more than a year.

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