Samsung Electronics and SK Hynix just laid out plans to spend up to $1.3t over the next decade on semiconductor fabs, AI data centers, advanced packaging, batteries, and displays, and the immediate share price reaction was rough, with Samsung down 4.7% and SK Hynix down 3.1%. When giant capital plans like this hit the headlines, investors often reassess which stocks might benefit from the build out and which could feel pressure from heavy spending. This article walks through 3 stocks from the AI and Semiconductor Innovation screener that appear closely tied to this news and explains how this backdrop could matter for your portfolio thinking.

GLOBALFOUNDRIES (GFS)

Overview: GLOBALFOUNDRIES is a semiconductor foundry that manufactures chips for customers around the world, supplying microprocessors, mobile and network processors, RF modems, microcontrollers, power management units, and emerging quantum technology solutions from facilities in the US and Europe.

Operations: GLOBALFOUNDRIES generates its US$6.8b in revenue entirely from semiconductor manufacturing services.

Market Cap: US$43.8b

GLOBALFOUNDRIES sits at the heart of the AI build out, as a key contract manufacturer for chips used in data centers, automotive, and communications. Unlike the headline grabbing mega spend from Samsung and SK Hynix, its recent commentary focuses on customer led, government supported capacity additions that aim to stay aligned with demand. The company is shifting toward higher margin areas such as silicon photonics and RF, while also returning cash via a new dividend. However, investors still need to weigh its relatively high P/E, heavy capital needs, reliance on external funding, and limited exposure to cutting edge sub 7nm nodes. What all this could mean for future cash flows and resilience in an AI supercycle is where the real story starts to get interesting.

GLOBALFOUNDRIES is focusing on higher margin AI and RF manufacturing, yet its high P/E and heavy capital needs raise big questions about staying power in an AI supercycle. Get the full picture with the analysis report for GLOBALFOUNDRIES

Applied Materials (AMAT)

Overview: Applied Materials supplies the tools, services, and software that chipmakers use to build and package semiconductors, handling critical steps like deposition, etch, inspection, and advanced packaging for customers across the US, Asia, and Europe.

Operations: Applied Materials generates most of its US$29.0b in revenue from Semiconductor Systems (US$20.9b), with a further US$6.8b from its Applied Global Services support and maintenance business.

Market Cap: US$497.7b

Applied Materials is closely tied to Samsung and SK Hynix’s US$1.3t capacity buildout, as those fabs, AI data centers, and advanced packaging lines all need the kind of wafer equipment and services AMAT sells. The company combines strong profitability, a large recurring services base, and deep co development with leading chipmakers, but the stock already trades at a rich valuation and relies heavily on a few key regions, including China, where export controls and license risks are front of mind. For investors balancing high AI exposure with concentration and policy risks, the relationship between its growth story and current pricing is a key area of focus.

Applied Materials’ growth story tied to Samsung and SK Hynix’s US$1.3t buildout is powerful, but the real tension is how that momentum lines up with today’s pricing and regional risks. For the full context that links this together, see the analysis report for Applied Materials

Intel (INTC)

Overview: Intel is a global chip company that designs and manufactures processors, graphics chips, networking hardware, and foundry products that power PCs, servers, data centers, AI systems, and connected devices for large tech customers and equipment makers worldwide.

Operations: Intel generates most of its revenue from its Client Computing Group at US$32.3b and Data Center and AI segment at US$17.8b, with Intel Foundry contributing US$18.6b and other activities adding US$3.2b, partially offset by US$18.2b of intersegment eliminations.

Market Cap: US$644.9b

Intel sits right in the crosshairs of the AI and semiconductor build out investors are watching after Samsung and SK Hynix’s US$1.3t spend. Its approach is very different, with management explicitly cutting gross CapEx targets, refocusing the portfolio, and pushing an internal foundry model to squeeze more from existing fabs. At the same time, Intel is pursuing AI-related opportunities through its 18A process, advanced packaging, and foundry contracts such as Google’s planned TPU volumes and Apple’s US based chips. This comes while the company is still unprofitable, relies on higher risk external funding, and has seen dilution and insider selling. For investors, the real question is how this mix of cost discipline, AI contracts, and execution risk compares with today’s expectations.

Intel’s push to cut gross CapEx while chasing AI foundry wins like Google’s TPUs and Apple’s US based chips has investors guessing how this story really fits together. The analyst forecasts for Intel hints at a twist most are missing.

The three stocks covered here are only the starting point, and the full AI and Semiconductor Innovation screener surfaced 41 more companies that pair solid financial profiles with AI and semiconductor stories that could be just as compelling. Use Simply Wall St to identify and analyze the exact catalysts, funding support, and business narratives that matter most 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.