Trade tensions, tariffs, and subsidy races are reshaping where and how chips and advanced technology products are made, and that is already feeding into stock prices. For investors, the question is which companies could benefit from onshoring, government support and supply chain rewiring, and which might face higher costs and uncertainty. This article looks at three large, established stocks from a Semiconductor and Advanced Technology Manufacturing screener that are exposed to the latest trade and industrial policy news, explaining how each one could be positively affected and what that might mean for your watchlist.

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Cambricon Technologies (SHSE:688256)

Overview: Cambricon Technologies is a Beijing based chip designer focused on core artificial intelligence processors, supplying cloud and edge AI chips, accelerator cards, computing modules and development software platforms that help power AI workloads across data centers, devices and embedded systems in China.

Market Cap: CN¥779.02b

Cambricon sits at the heart of China’s push to build domestic AI chip capacity, so rising trade barriers and export controls can funnel more local demand toward its cloud and edge products and supporting software. The company combines very strong recent earnings growth with high margins and a solid 21.1% ROE, which helps explain why the stock trades at a rich P/B multiple and well above one DCF estimate. At the same time, heavy use of non cash earnings, funding that leans on higher risk sources and limited board independence leave room for questions. For investors who can balance those factors, Cambricon is a high potential but high debate AI chip stock that may merit closer attention.

High margins, strong recent earnings and a premium P/B suggest Cambricon’s AI story is only partly priced in, but its funding mix and governance raise real questions that the 2 key rewards and 2 important warning signs (1 is major!)

Coherent (COHR)

Overview: Coherent is a US based provider of high end materials, optical components, and laser systems that sit inside data centers, communications networks, chipmaking tools, and industrial equipment worldwide, selling into everything from AI data traffic to precision manufacturing.

Operations: Coherent reports a segment adjustment of about US$6.6b, with demand spread globally across China, Japan, Europe, North America and the rest of the world, including roughly US$4.2b from North America and close to US$2.4b combined from China and Europe.

Market Cap: US$75.3b

Coherent sits at the intersection of AI data centers, photonics and onshoring, supplying optics and lasers that large customers need as they spend on capacity. It has attracted partners such as Nvidia and Apple. Analysts expect rapid revenue and earnings growth, referencing factors such as higher margin internal manufacturing and portfolio pruning. Management highlights a broad global footprint and a strong US production base as potential buffers against tariffs and trade friction. Set against that are a rich valuation, share dilution, reliance on a few large customers and cyclicality in industrial demand. For investors, the key issue is whether potential growth and policy tailwinds justify accepting those trade and customer concentration risks.

Coherent sits where AI traffic, optics and onshoring collide, but the full story is not just about headlines or partners like Nvidia and Apple. Get the analyst forecasts for Coherent and see what the market might be missing

Montage Technology (SHSE:688008)

Overview: Montage Technology is a Shanghai based IC designer that supplies chips and platforms used in cloud computing and AI infrastructure, including memory module components, DDR5 power management, PCIe retimers, CXL memory controllers, clock chips and its Jintide server platform for data center and enterprise customers in China.

Operations: Montage generates its CN¥5.7b in revenue from integrated circuit products.

Market Cap: CN¥278.2b

Montage sits at the sweet spot of China’s push to localize semiconductor and AI infrastructure, with chips that directly support memory rich servers, CXL based systems and cloud data centers that are aligned with subsidy driven investment and onshoring. Earnings growth of 49.2% over the past year and a 44.9% net margin help explain why the P/E is high. However, forecasts for revenue and earnings growth still point to meaningful expansion potential if execution holds. The flip side is a very volatile share price, relatively low current ROE and a capital structure that leans entirely on higher risk external borrowings. For investors, the real question is whether the combination of high quality earnings and policy tailwinds compensates for valuation stretch and volatility.

Montage’s high margin earnings and policy backed AI exposure look powerful, but the real story lies in how forecasts compare with volatility and funding risk. Review the analyst forecasts for Montage Technology

The three stocks in this article are just a starting point, and the full screener has surfaced 77 more Semiconductor and Advanced Technology Manufacturing companies with equally compelling stories that you have not seen yet in the Semiconductor and Advanced Technology Manufacturing screener. Use Simply Wall St to identify, filter and analyze the specific catalysts and narratives that matter most to you, so you can focus on the highest conviction opportunities across this part of the market.

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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.