3 Semiconductor Stocks Riding AI Memory And Chip Equipment Demand - simplywall.st

The semiconductor industry is experiencing renewed growth driven by the AI boom, with three stocks highlighted in this article offering exposure to AI-related memory and chip equipment demand. Everspi... Read original →

The AI infrastructure boom is accelerating MRAM’s commercial inflection point, driven by demand for high-bandwidth, low-latency memory. Everspin’s spintronic architecture offers irreplaceable reliability in data centers and aerospace, yet its sky-high P/S ratio lacks earnings backing; integration of embedded MRAM into sub-3nm logic nodes by TSMC or Samsung could render it obsolete. Ichor, a critical supplier of fluid delivery subsystems for EUV tools, is tightly coupled with Applied Materials and Lam Research but faces cash burn as U.S. CHIPS Act disbursements lag. Tighter export controls from the U.S., Netherlands, and Japan may abruptly halt fab expansions by clients in Taiwan, China, worsening its funding gap. Himax’s bet on AR and smart sensing aligns with AIoT trends, but its display driver IC business operates in a brutal price war with Novatek and Himax, capping gross margins below 20%. Over the next 18 months, survival hinges on transitioning from AI hype to design-win reality—without inclusion in NVIDIA or Broadcom reference platforms, these firms risk becoming distressed acquisition targets.