ASML’s stronger sales outlook and plans to ramp up EUV capacity have put a fresh spotlight on semiconductor equipment manufacturers, a key link in the AI-focused chip supply chain. With order books for advanced machines stretching into 2027 and 2028, some stocks in this space are tightly connected to the same demand trends that lifted ASML’s guidance. This article walks through 3 stocks from a Semiconductor Equipment Manufacturers screener that appear positively exposed to the news, which may help you decide whether any deserve a closer look or a spot on your watchlist.

Kokusai Electric (TSE:6525)

Overview: Kokusai Electric is a Japan based supplier of semiconductor manufacturing equipment, providing tools for deposition, treatment and measurement processes, along with maintenance services and parts, to chip producers worldwide.

Market Cap: ¥2.42t

Kokusai Electric sits at the heart of AI focused chip production, supplying key thermal processing tools used in advanced DRAM, NAND and logic devices that are drawing heavier investment as customers upgrade to more complex architectures. Management commentary highlights strong interest in equipment for high performance devices and a growing base of service revenue, which can improve earnings quality over time. At the same time, the stock carries real pressure points, including heavy exposure to Chinese demand, a high P/E and increased capital spending that could weigh on margins if orders slow. For investors watching ASML’s strong order visibility, Kokusai Electric is a place where those spending plans can directly translate into equipment demand.

Thermal processing demand tied to AI chips could be only half the Kokusai Electric story, and the other half may sit in the 1 key reward and 1 important major warning sign that hints at what happens if Chinese orders or margins shift

Onto Innovation (ONTO)

Overview: Onto Innovation is a US based semiconductor equipment company that supplies inspection, metrology, and lithography systems, along with process control software, to chipmakers and advanced packaging facilities so they can spot defects, measure tiny structures, and improve manufacturing yield. Its tools are used across a wide range of devices, from AI focused chips and HBM memory to power electronics and sensors.

Operations: Onto Innovation generates about US$1.0b in revenue primarily from Semiconductor Equipment and Services, with sales spread across Taiwan, South Korea, the United States, Japan, China, Southeast Asia, and Europe.

Market Cap: US$15.1b

Investors watching ASML’s stronger AI driven order book may find Onto Innovation interesting because it supplies the metrology and inspection tools that help turn those advanced wafers into working AI processors and HBM memory. Management commentary highlights strong AI packaging demand and high bandwidth memory exposure, but the stock also carries clear risks, including a very high P/E, a recent large one off loss of US$90.5m, and margin pressure that pulled net profit margin down to 10.3% from 21.3%. With analysts raising price targets on the back of Dragonfly G5 demand and a planned US$710m Rigaku stake to broaden process control, the key question is whether current expectations already bake in most of the AI packaging opportunity or whether there is still meaningful upside left for Onto Innovation.

Onto Innovation’s AI packaging exposure and Rigaku deal chatter hint at a bigger story, but the real tension sits between high expectations and execution risks buried inside the 1 key reward and 3 important warning signs

Teradyne (TER)

Overview: Teradyne designs and sells automated test systems for advanced semiconductors and circuit boards, as well as collaborative robots and autonomous mobile robots, serving chipmakers, electronics manufacturers, and industrial customers worldwide.

Operations: Teradyne generates about US$3.1b from Semiconductor Test, US$364.2m from Product Test, and US$330.6m from Robotics, with additional sales across defense, aerospace, and wireless testing markets.

Market Cap: US$53.4b

Teradyne sits at a critical choke point in the AI build out, testing the complex chips and memory devices that ASML’s tools help produce, and management commentary links recent upside in revenue and confidence to AI driven demand in both system on chip and memory. Earnings growth has been strong, margins are solid at a 22.6% net profit margin, and return on equity of 27.2% points to an efficient core business. However, the stock already trades on a rich P/E with limited upside to analyst targets and carries higher funding and volatility risk. For investors wondering whether the AI test cycle and robotics ambitions compensate for those concerns, Teradyne may warrant a closer look at how much growth is already priced in and how durable current AI orders really are.

Teradyne’s AI test and robotics story looks like it could be just getting started, yet the real twist may sit inside the analyst forecasts for Teradyne that hints at how current enthusiasm lines up with a potential turning point.

The three semiconductor equipment stocks covered here are just a starting point, and the full Semiconductor Equipment Manufacturers screener surfaces 22 more companies with equally compelling roles in the chip supply chain and their own potential AI related narratives. Use Simply Wall St to identify and analyze the specific catalysts, risk flags, and business profiles that matter most to you so you can focus on the semiconductor equipment opportunities that best fit your own conviction.

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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.