SpaceX’s blockbuster US$85.7b IPO and its push toward space based AI data centers have put a fresh spotlight on the semiconductors and chip manufacturers that could sit behind these projects. With launch costs under pressure and big tech exploring orbital infrastructure, the supply chain for high performance chips is back in focus. This article looks at 3 stocks from our Semiconductor and Chip Manufacturers screener that appear closely exposed to this news, to help you consider whether these companies might fit, or might not fit, into your own approach to the space and AI build out story.

Ultra Clean Holdings (UCTT)

Overview: Ultra Clean Holdings develops and supplies critical subsystems, components, and ultra high purity cleaning and analytical services that sit inside semiconductor fabrication tools, helping chip manufacturers and equipment makers build and maintain advanced production lines for everything from AI processors to displays and medical devices.

Operations: Ultra Clean generates most of its revenue from Products at about US$1.8b, with Services contributing roughly US$261 million, and a geographically diverse customer base led by Singapore (US$753.6 million) and the United States (US$505 million), alongside Europe and key Asian chip hubs.

Market Cap: US$5.4b

Ultra Clean Holdings sits close to the heart of the AI and wafer fab build out, supplying gas delivery subsystems, precision weldments and ultra clean parts services that chipmakers need for high bandwidth memory and leading edge logic. Forecast revenue and earnings growth are described as strong, and analysts expect a shift to profitability over the next few years. At the same time, the company is still working through current losses and relies heavily on external borrowing, so funding costs and execution on its UCT 3.0 efficiency plan are important. Customer concentration, insider selling and share price volatility also indicate this is not a low risk stock. This is one reason the full story on its AI positioning, balance sheet and long term targets may warrant closer attention.

Ultra Clean Holdings looks like a classic growth story masked by current losses and debt, so it pays to see how the numbers really stack up in the 2 key rewards and 2 important warning signs

GLOBALFOUNDRIES (GFS)

Overview: GLOBALFOUNDRIES is a dedicated semiconductor foundry that manufactures a wide range of chips for AI, data centers, mobile devices, cars, communications equipment, and emerging quantum technology, acting as the production partner behind many of the processors, RF chips, and power management units used by large tech and industrial customers.

Operations: GLOBALFOUNDRIES generates about US$6.8b in revenue from its Semiconductors segment.

Market Cap: US$47.1b

GLOBALFOUNDRIES is drawing attention as capital pours into AI and space based infrastructure, because it already supplies chips for communications, data centers, satellite systems and quantum technology, supported by collaborations such as its work with the U.S. Department of Energy’s Genesis Mission and European projects under the Chips Act. The company is profitable, and management is targeting higher margins from areas like silicon photonics and quantum manufacturing, even though ROE projections remain modest and the stock is flagged as expensive relative to estimated cash flows. For investors, the real question is how this mix of government backed projects, AI design wins and capital intensity fits with their own expectations for risk and reward.

GLOBALFOUNDRIES sits at the crossroads of government backed projects and AI chip demand, yet its valuation signals a tougher hurdle. For the full context, see the analysis report for GLOBALFOUNDRIES

Nova (NVMI)

Overview: Nova designs and sells advanced process control and metrology systems that help chipmakers measure critical dimensions, materials, and film thickness at each step of semiconductor production, so customers can seek to keep yields high on complex logic, memory, and advanced packaging lines used for AI and data center chips.

Operations: Nova generates about US$902.5 million in revenue from Semiconductor Equipment and Services.

Market Cap: US$18.3b

Nova provides metrology tools that customers say are increasingly essential as chip sizes grow, wafer usage per chip solution rises, and packaging technologies such as hybrid bonding and TSV make process control more important for profitability. Earnings growth has been solid with margins around 29.2%. The balance sheet is funded by higher risk external borrowing, and the stock trades on a high P/E relative to estimated fair value, so expectations are already elevated. For investors who think the SpaceX led race for orbital AI capacity will continue to influence wafer complexity and fab investments, a key consideration is whether Nova’s product depth and customer concentration justify that premium or suggest more caution.

NOVA’s accelerating earnings and premium P/E suggest something bigger behind its metrology tools, yet the balance sheet and valuation story is only half told in the analyst forecasts for Nova

The three stocks covered here are just a starting point, and the Semiconductor and Chip Manufacturers screener reveals 23 more companies with equally compelling semiconductor and chip stories waiting to be analyzed. Use Simply Wall St to identify, filter, and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction opportunities in this theme.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.