TAIPEI, Jan 9 (Reuters) - TSMC, the world's largest contract chipmaker, on Friday reported a 20.45% increase in ​fourth-quarter revenue from a year earlier, beating the ‌market forecast, as demand for the company's products leapt in response to ‌surging interest in AI applications. The company, whose customers include Nvidia and Apple, has been a major beneficiary of advances in AI, which has more than offset the tapering off of ⁠pandemic-led demand for chips ‌used in consumer electronics like tablets. ...

Group 1 - Jabil's shares increased by 1.8% following strong quarterly results, outperforming the S&P 500 index which fell by 1.2% [1] - For Q1 fiscal 2026, Jabil reported net revenue of $8.3 billion, a 19% year-over-year increase, and core net income of $309 million, up 36% [2] - Both revenue and core net income exceeded analyst expectations, with estimates of $8 billion and $2.69 per share respectively [3] Group 2 - Jabil provided guidance for fiscal 2026, projecting net revenue of $32.4 billion and core net income of $11.55 per share, surpassing analyst forecasts of $31.6 billion and $11.12 [4] - The company's intelligent infrastructure segment is expected to benefit from growing demand driven by artificial intelligence and data center expansions [5] - Jabil's performance reflects strong growth across multiple segments, not limited to its intelligent infrastructure business [5]

Core Viewpoint - Foxconn, the world's largest contract electronics maker, announced an investment of T$15.9 billion ($509.94 million) to establish its headquarters in Kaohsiung, southern Taiwan [1] Group 1 - The investment amount is T$15.9 billion, equivalent to $509.94 million [1] - The new headquarters will be located in Kaohsiung, which is in southern Taiwan [1]

Group 1: Federal Reserve and Market Reactions - New York Federal Reserve President John Williams indicated potential for a rate cut in December, suggesting the central bank may adjust its policy stance due to a softening labor market [9][10][12] - The S&P 500 experienced a significant intraday reversal, dropping 1.6% after an initial rise of 1.4%, now down approximately 5% from October highs [2][6] - Other Federal Reserve officials expressed mixed views on rate cuts, with some showing caution while others, like Williams and Jefferson, appeared more open to the idea [11][13] Group 2: Cryptocurrency Market - Bitcoin faced a severe sell-off, with $1 billion liquidated in just one hour, marking its worst month since the 2022 crypto collapse [3][4] - Bitcoin's price has dropped over 30% since reaching record highs in early October, currently trading below $85,000 [4][38] - Concerns arise regarding potential forced selling from companies heavily invested in Bitcoin, such as Strategy, which owns over 3% of all Bitcoin [37][38] Group 3: Retail Sector Performance - Retail earnings reports highlighted a focus on "value," with companies like Walmart, Ross, and TJX performing well by catering to diverse income demographics [25][26][28] - Gap Inc. reported better-than-expected results, particularly from its Old Navy and Gap brands, indicating strong consumer response to their marketing strategies [30][32] - The retail sector is characterized by a K-shaped recovery, where high-income earners are spending while low-income consumers seek value [28][29] Group 4: Warner Brothers Discovery Bids - Paramount, Comcast, and Netflix have submitted nonbinding bids for Warner Brothers Discovery, with Paramount seeking to acquire the entire company [5][34] - The bidding process is expected to continue with additional rounds, as Warner Brothers evaluates strategic options following interest from multiple suitors [34][35] Group 5: Foxconn and AI Partnership - Foxconn announced a partnership with OpenAI, planning to invest between $1 billion to $5 billion to expand its manufacturing footprint in the U.S. [36] - The collaboration aims to address challenges in establishing AI data centers, with Foxconn being a major player in contract electronics manufacturing [36]

Core Insights - OpenAI is partnering with Foxconn to design and build AI data center components in the U.S., marking a significant step in its infrastructure development plans [1][2] - The partnership aims to accelerate infrastructure deployment and secure long-term U.S. capacity, with OpenAI gaining early access to evaluate and potentially purchase systems produced by Foxconn [2][3] - OpenAI plans to co-develop multiple generations of AI servers and manufacture core components at Foxconn's U.S. facilities, which are located in several states including Wisconsin, Ohio, Texas, Virginia, and Indiana [3] Financial Commitments - OpenAI has announced spending commitments of approximately $1.4 trillion, raising concerns about its ability to generate sufficient profit to justify these investments [4] - The company anticipates reaching $20 billion in annualized revenue by the end of this year and hundreds of billions by 2030 [4] Previous Partnerships - OpenAI has a pending $100 billion agreement with Nvidia for phased investments as it builds out its infrastructure, along with cloud partnerships with major companies like Microsoft, Google, and Amazon [5] - The collaboration with Foxconn adds a manufacturing layer that localizes OpenAI's supply chain and may expedite deployment [6] Foxconn's Role - Foxconn is recognized for assembling Apple's iPhones and has expanded into AI and automotive manufacturing, building server racks tailored for AI workloads [6] - The company has a controversial history in the U.S., including a failed project in Wisconsin that was intended for flat-panel displays, which is now being repurposed for an AI data center by Microsoft [7]

Group 1: Government Shutdown and Economic Impact - The US House is preparing to vote on a bill that could end the longest government shutdown in history, with the Senate having already passed a spending bill [3][10][60] - The shutdown has led to a decline in planned holiday trips among US consumers, with average planned trips falling to 1.83% from 2.14% a year ago, and travel budgets down about 18% to approximately $2,334 [48][49] - Economists warn that the prolonged shutdown could drop GDP by up to 2% if government contractual obligations are not met, potentially wiping out economic growth for the year [53][54] Group 2: AMD and AI Market - AMD anticipates a 60% increase in data center sales over the next 3 to 5 years, with current data center revenue at $16 billion [4][5] - AMD is making significant strides in the AI sector, aiming to capture market share from Nvidia [5] - Infinian Technology has raised its sales forecast for chips used in AI data centers, indicating strong growth in this segment [7][35] Group 3: Earnings Reports and Market Reactions - Circle Internet Group reported Q3 revenue of $740 million, up 66%, with its USDC stablecoin circulation more than doubling to around $75 billion [13][14] - Cisco is expected to announce Q1 results, with solid demand for networking gear despite challenges from the government shutdown and higher parts costs [8] - Rocket Lab Corporation reported a 48% increase in revenue due to its satellite launch services, with analysts optimistic about future demand [40][42] Group 4: SoftBank and Nvidia - SoftBank's shares fell by as much as 10% after selling its entire stake in Nvidia for $5.8 billion, while also making significant investments in AI and robotics [6] - Nvidia's partner, Infinian, reported growth in sales of chips for data centers, despite facing a slowdown in the automobile sector [35]

Core Viewpoint - Foxconn expresses a positive outlook on AI-related demand, predicting it will significantly drive growth in 2026 and plans to announce a collaboration with OpenAI next week [1][6]. Group 1: AI Market Outlook - Foxconn's Chairman, Young Liu, indicates that the importance of AI will greatly increase in the coming year, despite concerns about a potential bubble similar to the dotcom era [2][3]. - The company believes that the development of AI is still in its early stages, suggesting long-term growth potential [3]. Group 2: Financial Performance - In Q3, Foxconn's cloud and networking business revenue, which includes AI servers, surpassed that of its smart consumer electronics for the second consecutive quarter [4]. - The company forecasts significant year-on-year revenue growth for Q4, with expectations of quarter-on-quarter increases in AI server revenue [4][5]. - Foxconn reported a net profit of T$57.67 billion ($1.89 billion) for the July-September period, exceeding the consensus estimate of T$50.4 billion [6][7]. Group 3: Future Developments - Foxconn is set to host its annual tech day in Taipei next week, where an announcement related to OpenAI is anticipated [6]. - The company is also exploring expansion into the electric vehicle sector, viewing it as a key future growth area, although this initiative has faced challenges [7].

Company Overview - Celestica Inc. (NYSE:CLS) is a provider of supply chain and manufacturing solutions, offering services such as design, engineering, assembly, logistics, and after-market support [2]. Stock Performance - Celestica's stock has seen a remarkable increase, tripling in value over the year, which translates to a 253% rise as of the latest report [1]. - The stock jumped nearly $25 or 8% in response to a strong quarterly performance and a positive investor day presentation [1]. Market Position and Growth Drivers - The company is benefiting from the data center boom, as it manufactures a significant amount of hardware for data centers [1]. - Celestica has begun designing its own equipment, which is seen as a lucrative opportunity for the company [1]. Future Outlook - The company provided a strong forecast for 2026, indicating confidence in its growth trajectory [1].

Core Insights - Celestica has experienced significant stock growth, with a 253% increase year-to-date, driven by strong quarterly performance and a positive investor day forecast for 2026 [2][3] - The company is benefiting from the data center boom, manufacturing essential hardware for server facilities [2][6] - Celestica has shifted its strategy from commodity markets to designing and manufacturing proprietary equipment, which has proven to be a lucrative approach [4][5] Company Performance - Celestica reported substantial top and bottom line beats in its latest quarter, indicating strong financial health [2] - The company has a forecasted revenue growth, particularly in high-speed networking, AI/ML compute, and storage systems [6][17] - Over 40% of Celestica's business is now designed for hyperscalers and digital natives, showcasing its shift towards proprietary solutions [7] Industry Trends - The demand for optical technologies, particularly co-packaged optics (CPO), is expected to grow, with Celestica actively developing this technology [12][13] - The company operates in four key sectors: aerospace and defense, semiconductor capital equipment, health tech, and industrial, with a focus on improving margins [14] - The integration of AI into business operations is becoming essential, positioning Celestica as a critical infrastructure provider in this evolving landscape [17]

Group 1: Company Performance - TSMC reported a 30% year-on-year increase in third-quarter revenue, reaching T$989.92 billion ($32.47 billion), surpassing market expectations due to heightened demand for AI applications [1][2] - The revenue exceeded the LSEG SmartEstimate of T$973.26 billion from 22 analysts and fell within TSMC's guidance range of $31.8 billion to $33 billion [2] - TSMC's shares have increased by 34% this year, outperforming the broader market's 18.5% rise [3] Group 2: Market Context - The company has benefited significantly from advancements in AI, which have compensated for the decline in demand for chips used in consumer electronics [3] - Foxconn, another major player in the industry, reported record revenue for the third quarter, indicating strong performance across the sector [4]