The Dow regained momentum by mid-morning on Monday as AI stocks surged. Electronic giant Foxconn (HNHPF+3.14%) reported record-breaking revenue for its fourth quarter, and the artificial intelligence boom continues into 2025.

Benefiting from the so-called “January effect,” investors returning from the holidays injected fresh capital into the market. While the day started off slow, the stock market found its rhythm as the session progressed.

The Dow Jones Industrial Average was 365 points or 0.8% up in the afternoon trading. The tech-heavy Nasdaq and S&P 500 were up 1.7% and 1.2%, respectively.

Nvidia and TSMC rally on Foxconn

Foxconn (HNHPF+3.14%), formally known as Hon Hai Precision Industry, on Sunday reported revenue of $2.13 trillion in New Taiwan dollars ($65 billion) for the October to December period. Despite revenue falling month-over-month in November and December, the world’s largest electronics maker recorded growth in each month compared to a year earlier. That gave the company a 15% year-over-year increase, a record for the major Apple supplier.

Shares of semiconductor companies across the world rose on the news of Foxconn’s revenue and first-quarter forecast, including Taiwan Semiconductor Manufacturing Company, which produces about 90% of the world’s chips.

TSMC (TSM+6.46%) stock rose almost 5% in pre-market trading in New York, adding to its major rally in 2024. Nvidia stock was up more than 2% in early trading, building on its own supersized gains in 2024. Advanced Micro Devices (AMD+3.04%) stock rose by almost 3%, while Intel (INTC-2.92%) shares ticked up slightly by 1% and Synopsys (SNPS+1.34%) shares climbed 2% in pre-market trading.

Bitcoin surges back above $100,000

Bitcoin has reclaimed the $100,000 level, climbing 4% in a single day. Investors are optimistic about the cryptocurrency’s future amid political and regulatory shifts, including Donald Trump’s upcoming inauguration on Jan. 20 and the departure of SEC Chair Gary Gensler. The rally isn’t limited to Bitcoin and other major cryptocurrencies have also gained traction, with Ether up 2%, Solana rising 3.6%, and Dogecoin increasing by 1.5%.

MicroStrategy buys 1,070 Bitcoin

The surge in Bitcoin’s price has sent crypto stocks higher as well. Crypto exchange Coinbase (COIN+7.88%) shares jumped 6.3%, while MicroStrategy (MSTR+9.90%) rose 5.5% following reports of its latest Bitcoin purchase. Today, the business intelligence firm bought 1,070 coins for approximately $101 million. This acquisition brings MicroStrategy’s total Bitcoin holdings to 447,470 coins, valued at $45.67 billion at the current price level.

— William Gavin contributed to this article